Hong Kong’s Worst Office Slump Squeezes Real Estate Funds
- Funds are seeking to sell towers at big discounts, agents say
- Some owners are considering stopping mortgage payments
Selling an office property in Hong Kong now is no easy feat, with rents falling and space emptying after the financial hub lost its luster during the pandemic.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Real estate funds are getting caught in Hong Kong’s worst commercial property slump after making ill-timed investments when the market peaked just a few years ago.
Funds are increasingly trying to sell once-prized office towers at significant discounts as they rush to exit to avoid mounting interest payments on loans. Those holding onto assets are having to endure record-high vacancies along with rising borrowing costs.