9/10/2018

Market Update Summary - Sep 2018

South Island Place received its Occupation Permit in August, delivering 307,200 sq ft of Grade A office space to the Wong Chuk Hang office market. The realisation of pre-commitments in the building, however, was offset by returning space in Kowloon East, resulting in net take-up amounting to just 28,300 sq ft in the overall market for the month. Returning space in Kowloon East is likely to continue to weigh on overall net take-up over the short-term due with about
452,000 sq ft (equivalent to 2.7% of the submarket’s stock) to be vacated upon lease expiry over the next 12 months.

Despite new lettings in Central dropping by 51% m-o-m, a number of finance related firms sought to expand in the submarket. Most notably, BitMEX, a cryptocurrency trading platform, reportedly leased the whole of the 45th floor (19,200 sq ft) at Cheung Kong Center, paying a monthly rent of HKD 225 per sq ft, a record high in the building. BitMEX will be relocating out of a non-Grade A office in the New Territories. Fullshare Holdings expanded in-house to 9,700 sq ft at Admiralty Centre Tower 1.

Grade A office rents advanced by 0.7% m-o-m in August with Wanchai/Causeway Bay posting the strongest growth, up 1.0% m-o-m, on the back of robust demand. In Central, rents grew by 0.9% m-o-m while rents in Grade A1 offices grew by 1.6% m-o-m amid tight vacancy.

Pricing in the strata-titled sales market remained hot with Mexan Limited announcing the purchase of a small unit in the high zone of Far East Finance Centre in Admiralty for HKD 165.0 million, or HKD 59,353 per sq ft, the second
highest unit price in the building.

Articles
  • Market Update Summary - Sep 2018

  • South Island Place received its Occupation Permit in August, delivering 307,200 sq ft of Grade A office space to the Wong Chuk Hang office market. The realisation of pre-commitments in the building, ...
  • 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 ...
  • 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 ...
  • 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 ...
  • 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 ...
  • 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
  • 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 ...
  • 4/11/2016
  • 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 ...
  • 11/8/2016
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