Greedy Landlords

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  1. #31
    jgl
    jgl is offline

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    Anyone see the SCMP article from yesterday? I'm posting a short extract as I assume that doesn't raise copyright issues:

    Central office rents to fall by half, says Merrill
    Cost of grade-A space forecast to drop 50pc from peak by 2010
    Yvonne Liu
    Oct 30, 2008

    The global financial crisis will lead to office rents in Central falling by 50 per cent by 2010 from a peak of HK$116 per sq ft in the third quarter, Merrill Lynch says.

    The financial management and advisory firm

    "Central office rentals are expected to fall because of weak office demand amid the global recession and increased supply from spaces vacated by relocating tenants to decentralised locations, or potential business closures," Merrill said in its latest property report.

    Previously, the firm had said it expected office rents to drop by 25 per cent to HK$72 per sq ft by the end of next year.

    However, in its latest report it said that forecast might have been conservative in view of current difficult market conditions.

    Merrill expects rents in Central to drop to HK$75 per sq ft by the end of next year and to about HK$60 per sq ft by the end of 2010. But it is optimistic that the downfall will be less dramatic than the 57 per cent decline after the Asian financial crisis of 1997/98 and outbreak of severe acute respiratory syndrome in 2003.

    It also believes residential prices will drop by 20 per cent between now and the end of next year, while retail rents will drop by 10 per cent.


  2. #32

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    lets be fair.
    the comparison basis are different.

    compared to 3 years ago, the rental recontract today would still be higher.

    compared to 3 months ago, the rental contract today of a unit nearby should be lower.


    screaming the landlord are greedy means you just move out and find another place that is market rate!


  3. #33

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    Quote Originally Posted by lowlight:
    If you are willing to pay $30+ for a cup of coffee, you're certainly in a higher class than I am!
    I got a red dot for that... Someone must really feel like a moron!

  4. #34

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    Quote Originally Posted by lowlight:
    I got a red dot for that... Someone must really feel like a moron!

    also got a red dot for my comment which you replied to...with the wonderfully intelligent comment of 'idiot'...

  5. #35

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    Quote Originally Posted by DanielandHayley:
    also got a red dot for my comment which you replied to...with the wonderfully intelligent comment of 'idiot'...
    Must be the same person!

  6. #36

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    Quote Originally Posted by freeier:
    lets be fair.
    the comparison basis are different.

    compared to 3 years ago, the rental recontract today would still be higher.

    compared to 3 months ago, the rental contract today of a unit nearby should be lower.


    screaming the landlord are greedy means you just move out and find another place that is market rate!
    Thank you, finally a sane post. Supply and demand ultimately determine the price/rent level for property, just like for any other good. Yes, the market has some specific factors (relatively long contract periods, significant transaction costs, relatively 'big ticket' items, etc.) which mean that price adjustments are not immediate and/or smooth, but the fundamentals still apply.

    Why blame landlords for trying to maximize rents but not tenants for trying to obtain a low rent? Seems like the same greed (read: economic self-interest) to me...

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