{
  "id": 2248636,
  "title": "Hong Kong buyers hunt for bargains in city’s battered noncore office market",
  "url": "https://urgent.news/2026/08/20/hong-kong-buyers-hunt-for-bargains-in-citys-battered-noncore-office",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-20T23:00:06.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/article/3364675/hong-kong-buyers-hunt-bargains-citys-battered-noncore-office-market"
  },
  "original_language": "en",
  "account": "Hong Kong's noncore office market remains challenged by high vacancy rates and limited investor interest, but owner-occupiers are capitalizing on the downturn to purchase office spaces at significant discounts. A recent example is the Estate Agents Authority (EAA), which secured an office at the OTB Building in Wan Chai for HK$70 million (US$8.93 million) in early 2023. This price, at HK$9,533 per square foot, is below the 10,000 per square foot benchmark, though not a drastic decrease from the previous sale in 2019, which was priced at HK$11,839 per square foot. Marcus Chu, senior regional director at Ricacorp Properties, believes the deal indicates ongoing buying support at the present price level, which bodes well for the wider noncore office market.\n\nHowever, the relatively small number of transactions at the OTB Building may have contributed to the relative stability of office prices in that area. Overall, values have plummeted by over half since their 2018 peak. Non-core office districts continue to grapple with numerous vacant properties and weak investor demand, with some areas reporting vacancy rates of roughly 30 percent, as reported by Centaline Commercial. Developers have been reducing prices to clear inventory, and distressed office assets combined with stringent bank financing have further depressed valuations. Reeves Yan, a senior executive at CBRE, noted that distressed sales continue to provide excellent opportunities for investors, enabling opportunistic buyers and end users to acquire high-quality assets at reduced prices.",
  "summary": "Hong Kong’s noncore office market is still plagued by high vacancy rates and weak investor demand, but owner-occupiers are taking advantage of the downturn to buy up office space at steep discounts. The latest example is the Estate Agents Authority (EAA), which agreed a deal earlier this month to buy an office at the OTB Building in Wan Chai for HK$70 million (US$8.93 million), according to Land…",
  "key_points": [
    "Hong Kong's noncore office market faces high vacancy rates and limited investor interest.",
    "Estate Agents Authority purchased an office at OTB Building for HK$70 million in 2023.",
    "Office prices in the area have dropped over 50% since 2018 peak."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}