Goldman Sachs significantly lowers the asking price for its holdings of Hong Kong office buildings.
According to market sources, due to a lack of buyers, Goldman Sachs has lowered the asking price for a Hong Kong office building it owns by at least one-third, or approximately HKD 900 million.
Zhitong App has learned that the Hong Kong office market continues to be under pressure. According to market sources, Goldman Sachs has lowered the asking price for a Hong Kong office building it owns by at least one-third, or approximately HKD 900 million, due to a lack of buyers. The property in question is 88WL, located at 88 Wing Lok Street in Sheung Wan. It is a 25-story Grade A commercial property with a total floor area of approximately 90,199 square feet. The market valuation in July was HKD 1.35 billion.
In addition to Goldman Sachs, Kai Long Rui Group, a Shanghai-based real estate private equity fund, is also an investor in 88WL and has appointed an agent to sell the property. Both Goldman Sachs and Kai Long Rui have declined to comment on the news.
On November 6th, Savills released a report stating that the Hong Kong office leasing market is facing unfavorable factors that could accelerate its decline. Due to shrinking market demand, rents for Grade A office buildings in Hong Kong fell by 2% in the third quarter. However, the vacancy rate also decreased by 0.4%.
Liu Wei Ji, Vice Chairman and Head of Commercial Leasing at Savills Hong Kong, pointed out that the office leasing market in Hong Kong is facing various challenges, including high interest rates, geopolitical tensions, and financial pressures on domestic companies. These factors may accelerate the decline in office rents and lead to an early bottoming out and rebound in the next one to two years. Therefore, it is expected that office rents in Hong Kong will fluctuate within a range of 0% to -5% next year.