HONG KONG--(BUSINESS WIRE)--The latest RICS (Royal Institution of Chartered Surveyors) Commercial Property Market Monitor revealed a rise in sentiment for various Hong Kong commercial property market sectors, but the broader outlook remained low for the fifth consecutive quarter.
The RICS Occupier Sentiment Index (OSI) increased to -16, from -31 in Q2. The Investor Sentiment Index (ISI) climbed to -5, a more encouraging swing over the previous quarter’s ISI of -28, and indicative of some stabilisation in market conditions. The OSI and ISI are constructed by taking the unweighted average of readings for three series relating to each market.
The negative sentiment locally is driven by subdued global growth, sluggish retail trends and declining tourist numbers. Tourist numbers dropped another three percent in Q3 With some stabilisation in the housing market, however, local consumer confidence has been on the rise and this should provide a boost to retail spending.
The office occupier sector remains as the most positive market, with rent expectations in positive territory and tenant demand continuing to increase. Survey respondents expect the office sector to continue to outperform all others, with anticipated growth over the next 12 months of 2.7 percent.
RICS Hong Kong External Affairs and Public Concerns Committee Member Mr Frank Wong MRICS said “Retail rents fell by 2.3 percent the 12 months leading to Q2, according to the Rating and Valuation Department. RICS lead indicators suggest that this figure will continue trending downward in the next year.”
The RICS Global Commercial Property Monitor is a quarterly guide to the trends in the commercial property investment and occupier markets. The sentiment index introduced by the RICS economic department allows tracking of commercial property trends. The report is available from the RICS website www.rics.org/economics
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