Hong Kong property agencies are cutting staff as the market drops
Staff cuts lead the way in Mingtiandi’s roundup of Asia real estate headlines today as Hong Kong property agencies clear out dead wood as deals plunge amid a market slump.
In other news around the region, Softbank says WeWork Japan is on the path to profitability, while a Singapore JV is investing $230 million in a 24,000 square metre Bangkok data centre campus, while Thailand’s biggest retail group chases investments in Austria, Italy and Japan.
Elsewhere, a Hong Kong-based flexible office provider has launched a new 1,500 square metre location in Shanghai and a mainland developer is on the hunt down under.
Hong Kong Property Agencies Cut Staff as Deals Plunge
Two of Hong Kong’s largest property agencies have either cut headcount or seen staff members leave amid a slump in commercial property transactions.
Centaline Commercial and Midland IC&I have both shrunk their ranks by about 40 people each, as the city’s anti-government protests weigh on the sector. The total number of agents in Hong Kong fell 1.5 percent to 39,526 last month from a peak of 40,142 in November last year, according to the Estate Agents Authority. Read more>>
Singapore Data Centre JV Investing THB 7.3B in Bangkok Hyperscale Campus
ST Telemedia Global Data Centres (STT GDC), a Singapore-based data centre operator, is investing THB 7.3 billion ($230 million) to develop a data centre on Ramkhamhaeng Road to capitalise on the rise of Chinese businesses and flourishing digital operations in the country.
The 15-rai (24,000 square metre) facility will feature the first hyper-scale data centre campus with designs and architecture that would accommodate business expansion, said Supparat Sivapetchranat Singhara Na Ayutthaya, chief executive of STT GDC Thailand, a joint venture of STT GDC and Frasers Property Thailand, an integrated real estate platform provider in Thailand. Read more>>
Thailand’s Central Investing THB 20B in European and Japanese Real Estate
Thailand’s top retailer Central Group said on Monday that it plans to invest over 20 billion baht ($660 million) in projects in Vienna, Osaka and Turin, capitalising on a strong local currency.
The investment plans can be partly attributed to the strong baht, which has strengthened against most major currencies, the company said. Read more>>
SoftBank Says WeWork Japan Can Become Profitable ‘in near future’
WeWork’s Japan unit can become profitable “in the near future”, the Japanese partner of the US office-space sharing startup said on Tuesday, amid investor scepticism over its path to profitability.
WeWork Japan, a joint venture between the US startup, telco SoftBank Corp and its parent SoftBank Group Corp, is growing well with high occupancy rates, SoftBank Corp’s CEO Ken Miyauchi said. Read more>>
Poly Closes in on Sydney Tower
Chinese developer Poly, which is looking to expand its remit beyond development opportunities, has entered into due diligence on a B-grade office tower in Sydney’s CBD.
The site, which is held by Singapore-based private equity real estate firm SC Capital through fund manager Fortius Funds Management, is being sold off market in a deal that is expected to transact for more than $260 million. Read more>>
Compass Launches Flexible Office Location in Shanghai
Compass Offices announced the opening of their latest workspace in Shanghai at United Plaza.
The 1,500 square metre facility on West Nanjing Road in the Jing’an business district is the latest example of Compass Offices’ hybrid workspace concept. Read more>>
Hong Kong Cheaper Than Sydney and Tokyo for Office Fit-out Costs
The cost to fit out a new office in Hong Kong is cheaper than six major Japanese or Australian cities, a new study shows. That is a small consolation for prospective tenants in a city with the highest rentals in the past four years.
At $130 per square foot, Hong Kong ranks seventh among 28 gateway cities in Asia-Pacific region, according to the inaugural fit-out guide published by Chicago-based property consultancy Cushman & Wakefield. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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