Jones Lang LaSalle(US:JLL) 智通财经网·2025-09-03 03:44Core Viewpoint - The Hong Kong commercial real estate market is facing structural issues that cannot be resolved in the short term, and the government should allow market mechanisms to adjust while considering the establishment of an asset management company to buy time for recovery [1] Group 1: Market Conditions - The overall vacancy rate for office spaces in Hong Kong currently stands at 15% [1] - Recent transaction prices for Central district office buildings have dropped over 70% compared to their peak levels a few years ago [1] Group 2: Financial Implications - Many commercial real estate companies are in a state of insolvency, yet banks have refrained from significantly lowering property valuations to avoid impacting asset quality [1] - The current capitalization rate for office buildings is approximately 2% to 3%, which is lower than borrowing costs, indicating a challenging financial environment for potential buyers [1] Group 3: Government and Market Response - The government is adopting a temporary approach, hoping that interest rate cuts will stabilize the market, although this may not be effective without substantial reductions in property valuations [1] - There are two proposed strategies: allowing the market to self-correct as prices become attractive, or actively intervening by establishing a central asset management company to handle properties and provide banks and borrowers with time to wait for market recovery [1]