• Office leasing demand remained weak in Q3 2019 due to continued slow global economic growth and the ongoing U.S.-China trade conflict. The large volume of new supply, slow pre-leasing and lack of new sources of demand ensured rents declined by 0.2% q-o-q.

 

  • Regional retail leasing activity weakened as most retailers remained cautious towards expansion and adopted a highly selective attitude towards location. Rents fell by 1.7% q-o-q, mostly due to the sharp 10.5% fall in Hong Kong which continues to see large demonstrations in major retail areas.

 

  • Industrial sentiment weakened further this quarter alongside the deteriorating economic outlook. Regional rental growth slowed to 0.3% q-o-q, the smallest gain in almost two years, as landlords turned more flexible towards lease terms.

 

  • Commercial real estate transaction volume registered US$34 billion in Q3 2019, an increase of 17% q-o-q, supported by the completion of several large and related-party transactions.