Student-led pro-democracy protests have resulted in negotiations for the sale of several Hong Kong commercial properties being postponed as investors get the jitters, according to property agents.
Daniel Wong Hon-Shing, the chief executive at commercial agency Midland IC&I, states that negotiations on five properties have been put on hold because of the challenges associated with assessing the impact the protests might have on the Hong Kong economy.
He went on to say that investors have become cautious due to the rising political tension in the city and are not prepared to act hastily.
Negotiations have stalled on deals for three office properties located in Kowloon Bay, Kwun Tong and Tsim Sha Tsui, a shop in the Western District and an industrial unit situated in Kwai Chung.
Even though most of the properties are not in areas directly affected by the protests, Wong points out that investors are concerned that Hong Kong’s economic outlook could be affected if the Occupy Central campaign continues for an extended time.
According to Wong, landlords have reduced asking prices by 10-15 per cent but have still not found buyers.
Some retailers have been forced to close their doors during the National Day “golden week”holiday, one of the busiest weeks for the sector, after protestors blocked roads. Sales have been down significantly from last year as a result.
On October 1, the China National Tourism Administration suspended visits by tour groups to Hong Kong, which will only serve to aggravate the retail slump even further. He went on to say it is difficult to gauge the market’s prospects, since they hinge on how long the pro-democracy protests last and how they end.
Wong-Wai-kei, a director at Centaline’s retail shop department, said that approximately 10 negotiations involving the acquisition of ships were on hold because investors had concerns that prices could drop further.
He said that the next 15 days of the protest might provide a clearer indication of where the market may be heading.
