Market Update Summary - February 2017
- Despite a slowdown in leasing activity around the Chinese New Year holidays, net take-up in the overall market still amounted to 54,300 sq ft in January on the back of consolidation and/or relocation ...
Market Update Summary - April 2017
Padded by tenant decentralisation, net take-up amounted to 52,000 sq ft in March. Wong Chuk Hang continued to attract strong interest with two Government departments reportedly leasing 57,500 sq ft at 41 Heung Yip Road, relocating from offices in Central and Hong Kong East.
In Central, leasing activity remained subdued with the total number of new lettings down 47% m-o-m. PRC demand remained broadly intact with CMB International Capital Corporation leasing 30,000 sq ft at Three Garden Road and Bank of Communications leasing 10,100 sq ft at Man Yee Building to accommodate expansion plans.
Led by growth in the premium Grade A1 market, Central rents edged up 0.5% m-o-m. Rentals across all other office submarkets held steady against a tight vacancy environment.
Despite Kowloon East carrying the highest vacancy among the city’s major office submarkets, rentals remained largely unchanged on the back of expansion and relocation requirements. Still, rentals in the submarket will likely remain under pressure over the near term, with 1.6 million sq ft of new supply set to enter the market this year and slow pre-leasing activity in upcoming new Grade A office buildings.
Investor sentiment remained strong as several smaller units transacted at new record highs, in terms of unit price. According to market sources, a small unit in Lippo Centre Tower Two was sold for HKD 87.9 million (HKD 30,749 per sq ft) and a whole floor at Bank of America Tower was sold for HKD 470.0 million (HKD 34,058 per sq ft), both record highs.
Three commercial/hotel sites in Central, Cheung Sha Wan, and Kai Tak area were released for sale via tender, with closing dates in May 2017. The Murray Road Carpark site (IL 9051), which has a site area of 31,000 sq ft and a maximum buildable GFA of 465,000 sq ft will be the first government site in Central put up for sale in 20 years. The conditions of sale require the purchaser to include a public car park though the floor area can be exempt from GFA calculations if built below grade—subject to the payment of a land premium.
Market Update Summary - 3rd Quarter 2016
- Lease expiries along with the on-oing relocation of tenants affected by the upcoming redevelopment of Warwick House and Cornwall House in Quarry Bay contributed to a net withdrawal of 76,400 sq ...
Market Update Summary - 2nd Quarter 2016
- In Q2 2016, leasing demand in Central was driven by expansion requirements from the banking and finance sector. Notable transactions included Julius Baer expanding into a whole floor at Two Exchange S ...
Market Update Summary - 1st Quarter 2016
- Capped by a tight vacancy environment, leasing activity remained subdued with the total number of new lettings dropping 5% m-o-m to 36 transactions in March, about 35% below the monthly level recorded ...
Market Update Summary - 4th Quarter 2015
- Central The main themes of the rental market in Central – relocation and inbound demand – remained consistent during Q4 2015 and throughout the year since the implementation of Shanghai-Hong ...
Market Update Summary - 3rd Quarter 2015
- Central, Admiralty and Sheung Wan: Financial sector remains as the main occupiers among office spaces in Central, Admiralty and Sheung Wan. With a low vacancy rate and a shortage of major ne ...
Market Update Summary - 2nd Quarter 2015
- Central, Admiralty and Sheung Wan: Tenants from financial sector remain as the main occupiers among office spaces in Central, Admiralty and Sheung Wan, probably contributed by the result of ...
Market Update Summary - 1st Quarter 2015
- Kowloon East Commercial activities at Kowloon East business are becoming mature which is appealing to varieties of companies with their head quarters settled down in the area. Expected to hav ...