6/9/2019

Market Update Summary - Aug 2019

Retail sales continue to weaken in Hong Kong

The Central occupier market contracted by 56,100 sq ft in July amid subdued leasing demand pushing the vacancy rate up to a three-year high of 2.6%. Among the few transactions completed during the month, an insurance firm reported leased 18,300 sq ft The Center.

The overall market recorded positive net take-up of 75,900 sq ft in July, driven by leasing activity outside of Central, particularly Hong Kong East. Notably, Standard Chartered Bank leased 18,700 sq ft at Oxford House to accommodate the expansion of their virtual banking arm.

The completion of K11 ATELIER King's Road in June led to an uptick in the Vacancy rate in Hong Kong East. Recent commitments in the building, however, led to the vacancy rate dropping back down to 2.7%.

Overall, market rents slipped by 0.1% m-o-m in July. Rents in Central and Wanchai / Causeway Bay continued to retreat, down by 0.2% m-o-m and 0.1%, respectively. Kowloon East was the only major office submarket to record growth with rents up 0.2% m-o-m.

Few office properties changed hands during the month as investors digested the heightened uncertainly in the global economic outlook as well as the escalating civil unrest. Still, pricing remained relatively unchanged as vendors continued to hold firm on asking prices. Notably, a small unit in the mid-zone of Admiralty Centre Tower 1 reported sold for HKD 200 million (HKD 30,465 per sq ft) with the vendor booking a gain of 272% over a 10-year period.

Articles
  • Market Update Summary - Aug 2019

  • Retail sales continue to weaken in Hong Kong The Central occupier market contracted by 56,100 sq ft in July amid subdued leasing demand pushing the vacancy rate up to a three-year high of 2. ...
  • 6/9/2019
  • Market Update Summary - May 2019

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  • 20/5/2019
  • Market Update Summary - Sep 2018

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  • 9/10/2018
  • Market Update Summary - May 2018

  • Strata-Titled office transactions surpass the HKD per HKD 60,000 per sq ft mark Net absorption in the overall market amounted to 634,200 sq ft in April, buoyed by the realization of pre-commitmen ...
  • 15/5/2018
  • Market Update Summary - January 2018

  • Housing prices in 2017 increase at their fastest pace in five years The realisation of pre-commitments at Lee Garden Three, issued with its Occupation Permit (OP) during the month, and new ...
  • 26/1/2018
  • Market Update Summary - August 2017

  • Office Leasing activity slowed amid the summer school holidays with a net withdrawal of 17,300 sq ft recorded in the overall market. Wanchai/Causeway Bay and Kowloon East benefitted from ong ...
  • 14/9/2017
  • 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 ...
  • 9/5/2017
  • 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 ...
  • 20/2/2017
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