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Chinese firms paying record sums for trophy office buildings in HK

It's a way for them to eliminate the risk of costly rent increases in the future: analysts

Published Wed, Nov 25, 2015 · 09:50 PM

Hong Kong

AS analysts start turning bearish on Hong Kong home prices, the commercial property market is showing no signs of cooling, with Chinese companies shelling out record amounts for trophy buildings.

Sellers have reached out to potential buyers including Industrial & Commercial Bank of China, Bank of Communications and Fosun International, according to brokers who asked not to be named because the information is private.

AIA Group is among bidders for a Swire Properties commercial building in Kowloon Bay that may fetch HK$8 billion (S$1.45 billion), Hong Kong Economic Times reported on Wednesday, citing unidentified people.

Hong Kong, which boasts the most expensive office rents in the world, has become a sought-after desti…

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