Singapore office rents might overtake those of Hong Kong for the first time since 2009, a sign that the Southeast Asian city-state is gaining an edge over its rival financial hub.
Average office spot rents in Singapore could rise 5 to 10 percent next year on the back of a limited new supply, according to a Bloomberg Intelligence report.
Hong Kong’s prime office vacancy rate might exceed 12 percent by the end of next year following a supply boom in decentralized districts, analysts Patrick Wong and Kristy Hung wrote.
The contrasting office market outlook reflects the impact of different pandemic management strategies adopted by the cities.
While Singapore is cautiously reopening and work from home remains the default arrangement, it has stopped targeting zero COVID-19 cases and begun easing border controls.
Hong Kong remains closed off to the rest of the world and has strict quarantine rules due to its elimination strategy, which has garnered criticism from global companies.
Singapore’s office market is also benefiting from the “stay-at-home” sectors given the shift in tenant profile in the past few years from financial services to technology, said Christine Li (李敏雯), head of research for Asia Pacific at Knight Frank in Singapore.
Hong Kong has been less competitive in attracting new tenants due to its perceived high costs, she said.
“With the COVID-zero approach on Hong Kong’s part, multinational companies might continue to find challenges in hiring cross-border talent to its shores,” Li said. “That could have weakened the potential recovery trajectory in the occupier market.”
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, has decided to slow down its 3-nanometer chip production as Intel Corp, one of its major customers, plans to push back the launch of its new Meteor Lake tGPU chipsets to the end of next year, market researcher TrendForce Corp (集邦科技) said yesterday. That means Intel has canceled almost all of the 3-nanometer capacity booked for next year, with only a small amount of wafer input remaining for engineering verification, the Taipei-based researcher said in a report. Based on Intel’s original schedule, TSMC was to start producing the new chipsets in
DATA SHOW DOWNTURN: Manufacturing in Taiwan contracted as production and demand slumped, while growth in chip exports last month eased in South Korea World chip sales growth has decelerated for six straight months in another sign that the global economy is straining under the weight of rising interest rates and mounting geopolitical risks. Semiconductor sales rose 13.3 percent in June from a year earlier, down from 18 percent in May, data from the global peak industry body showed. The slowdown is the longest since the US-China trade dispute in 2018. The three-month moving average in chip sales has correlated with the global economy’s performance in the past few decades. The latest weakness comes as concern about a worldwide recession has prompted chipmakers such as Samsung
‘NO NEED TO WORRY’: The central bank governor said foreign selling on the TAIEX is normal for this time of year and that the nation has ample forex reserves Taiwan would emerge unscathed from China’s retaliatory actions to protest US House of Representatives Speaker Nancy Pelosi’s visit to Taipei, top monetary and financial officials said yesterday. Central bank Governor Yang Chin-long (楊金龍) shrugged off unease over potential instability in the foreign exchange and stock markets after foreign portfolio funds trimmed their holdings of local shares for two straight days amid Beijing’s threats of retaliation. “There is no need to worry,” Yang said on the sidelines of an event to celebrate the first anniversary of the opening of Central American Bank for Economic Integration’s (CABEI) Taipei office and the 30th anniversary of
Italy is close to clinching a deal initially worth US$5 billion with Intel Corp to build an advanced semiconductor packaging and assembly plant in the country, two sources briefed on discussions said yesterday. Intel’s investment in Italy is part of a wider plan announced by the US chipmaker earlier this year to invest US$88 billion in building capacity across Europe, which is striving to cut its reliance on Asian chip imports and ease a supply crunch that has curbed output in the region’s strategic auto sector. Asking not to be named due to the sensitivity of the matter, the sources said the