Hong Kong Midland: Borrowing costs as low as 6 to 7 basis points, sluggish commercial property investment market.

Local media reports that according to Lu Zhanhao, CEO of the United States Business Association, the United States has not reduced interest rates, with commercial property loan interest rates expected to be at least 6 to 7 percent, and banks not being actively lending. At the same time, there are many vacant shops on the streets and the investment atmosphere for commercial properties is poor, causing the commercial property investment market to be sluggish.

According to statistics from the United States Business Association, the vacancy rates in Hong Kong’s four core areas – Causeway Bay, Tsim Sha Tsui, Central, and Mong Kok – reached 9.6 percent in the first quarter.

Furthermore, Lu Zhanhao pointed out that outbound travel by Hong Kong residents has had an impact on shop rents, with some areas seeing a drop of up to 40 percent in rent. It is expected that tourist area rents will increase by up to 5 percent this year, and if the easing of individual travel restrictions accelerates in the future, it may drive up rents for shops.