Hong Kong's Commercial Real Estate Faces Crisis

The article highlights the challenges facing Hong Kong's commercial real estate market due to high interest rates, a supply glut, and weakened demand. Properties like Cubus in Causeway Bay are being sold under pressure, with widespread distressed asset sales and rising vacancy rates. Office rents and property values have dropped significantly, while banks face bad debts from overleveraged property owners. Despite recent rate cuts, recovery is expected to be slow, with experts predicting the downturn to last into 2025, exacerbated by geopolitical and economic instability.