Hongkong Land said Wednesday rental reversions in its Hong Kong Central office and retail portfolios were positive in the first quarter.
For the Central office portfolio in Hong Kong, rental reversions were positive despite a slowdown in leasing enquiries amid tight market supply, the property developer said in its interim management statement filed to SGX.
Vacancy for the Central office portfolio rose to 2.1 percent form 1.4 percent at end-2018, but the company said it was expected to decline ahead.
The Central retail portfolio was effectively fully occupied, Hongkong Land said.
For the Singapore office portfolio, rental reversions remained positive in the quarter, but vacancy rose to 2.8 percent at end-March from 2.5 percent at end-2018, Hongkong Land said.
The development properties on mainland China had a lower profit contribution on-year for the quarter due to the timing of completions, the filing said.
Hongkong Land’s attributable interest in mainland contracted sales was US$193 million for the quarter, compared with US$300 million in the year-ago quarter, the filing said.
“While market sentiment remained stable, contracted sales were also lower due to the timing of sales launches,” Hongkong Land said. “Both completions and contracted sales are expected to be stronger in the second half of the year.”
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