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 - Dec 2019S
Leasing across all sectors remains subdued
The overall leasing market recorded a net withdrawal of 91,900 sq ft, causing the vacancy rate to rise 5.9% across Hong Kong. Vacancy rose in all of the core submarkets of Central, Wanchai/Causeway Bay and Tsimshatsui, while both decentralized markets tightened slightly. While leasing activity remains subdued, there were some examples of expansion in the insurance industry. For instance, FWD reported leased 25,800 sq ft at Millennium City 1 in Kwun Tong, while AIA leased 18,700 sq ft at The Gateway Tower 5 in Tsimshatsui to accommodate expansion requirements.
In Central, net take-up has remained negative in every month since October 2018 as vacancy now reaches its highest point in more than 4 years. Leasing activity was largely dominated by tenants seeking more cost effective options within the submarket. Notably, Huarong (Macau) reportedly leased 20,300 sq ft at One Pacific Place, while Guosen Securities leased 13,500 sq ft in the same building; both relocating out of Grade A1 offices in Central.
The rental decline trend continued in November as rents in the overall market dropped by 0.6% m-o-m. Elevated vacancy led to the sharpest rental decline (-1.3% m-o-m) in Kowloon East, followed by Wanchai/Causeway Bay (-1.1% m-o-m).
The office sales market remained quiet as investor sentiment continued to be impacted by internal and external factors. Among the more notable transactions, a small unit in the mid-zone of Bank of America Tower reportedly changed hands of HK48.8 million (or HKD42,920 per sq ft). The reported unit price was roughly 20% lower than the price paid for a small unit in the mid-zone of the same building that transacted in March 2019.
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 ...