The View | Bullish case for Hong Kong student housing should be treated with caution

Since 2018, the city has lurched from one crisis to the next, preventing a recovery from taking hold and casting doubt over the future of Hong Kong’s position as a financial centre.
The facts speak for themselves. In the office market, rents for grade A offices have fallen 40 per cent since the peak in the second quarter of 2019, while the vacancy rate has shot up to a record high of 17.5 per cent, data from CBRE shows. Rents and capital values are expected to suffer further declines this year.
In the residential market, the Centaline City Leading Index, a gauge of second-hand home prices, has dropped 28.5 per cent since August 2021 to its lowest level since 2016. Despite a series of government measures to stimulate demand, transaction volumes in the first quarter fell 19.2 per cent on a quarterly basis. JLL forecasts a further 5 per cent fall in home values this year.
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