Hong Kong, 6 November 2018 – Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services today released a flash report, Hong Kong and CBD Seoul Rents Vulnerable to Falling Stock Markets, in response to recent declines in stock markets in Asia. 

Andrew Haskins, Colliers’ Asia Head of Research, commented: “Among Asia’s leading financial centres, the relationship between the stock market and Grade A office rents in CBDs is strongest in Hong Kong, followed by Seoul, weaker in Shanghai and Singapore, and weakest in Tokyo.”

Hong Kong
Finance sector tenants occupy 54% of Grade A office space in the CBD, and financial stocks have a 48% weighting in the Hang Seng Index. The strong relationship between the stock market and rents over time leads to a forecast of a 3.8% drop in rents in the Central/Admiralty districts in 2019. Average citywide rents in Hong Kong should be flat in 2019.

Financial sector tenants occupy 36% of Grade A offices in Seoul’s CBDs, and the finance sector has a 20% weighting in the KOSPI. Seoul shows the second closest relationship between stock market performance and office rents, after Hong Kong, and as a result the risk to our already cautious rent forecasts for Seoul’s CBDs is likely on the downside.


The financial sector represents 31% of the Shanghai Composite Index and 42% of Grade A offices in the CBDs. However, the relationship between stock market performance and rents is low and therefore the city’s office market is expected to withstand financial shocks. Colliers predicts 1.5% average annual citywide rental growth during 2018-2022.

The financial sector represents 43% of the Straits Times Index and occupies 45% of grade A offices in the CBDs. Given the relatively weak relationship between stock market performance and office rents in Singapore, and the present situation of tight vacancy and muted supply, Singapore’s CBD rents are expected to continue to grow by 8% in 2019 and 5% in 2020.

The financial sector has a 12% weighting in the TOPIX and occupies 8% of Grade A office space in Tokyo’s CBDs. The correlation between the TOPIX and rents is very low. We expect Tokyo’s office market to continue its recovery with rent growth peaking at about 4.5% YOY within the next several quarters before tapering down to a more sustainable annual growth rate of 0.8%.

To download the full flash report, visit here.

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About Colliers International Group 

Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 12,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world’s most respected institutional real estate investors. 

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.

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For further information, please contact:

Michelle Shao 
Marketing Communications | Asia 
Colliers International 
Phone: (852) 2822 0541
Email: michelle.shao@colliers.com