How the upward trend in stock market will impact rents in Central

Office rents in Central could rise up to 10%.

According to Colliers International, besides its usual demand and supply forecasting method, it offers the following alternative approach to forecasting the medium-range rental trend in Central. Colliers noted that the basic fact is that banking and financial services tenants occupy more than 50% of all the grade-a stock in core Central. 

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As such, the expected rise in stock market volume will create a positive scenario for such players and therefore the rental trend in Central. The Hong Kong stock market has grown in volume since late 2012. By correlation analysis, office rents in Central could rise by 5 to 10% YoY.