The average prices of grade A office deals done in Admiralty ended the quarter up 20% from their lows in January, said Desmond Poon Chi-ming, an associate director of Chartersince Realty (International).

But falling rentals were expected to cap the price rises, analysts said.

In Lippo Centre, where prices fell 61 per cent to HK$7,100 per square foot in January from their peak of HK$18,000 per square foot in December 2007, three transactions were sealed in recent months at an average of HK$8,754 per square foot.

Mr Poon said the earlier sharp falls in prices had attracted investors back to the market and a total of 15 deals were done in Admiralty last month, compared with none in October last year. "But this doesn't mean we have left the down cycle," he said.

South China Morning Post