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. ...
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 ft in the overall market in September.
In Central, leasing demand was underpinned by requirements from PRC financial
institutions, which accounted for 70% of all new lettings, in terms of floor area leased. Bank of Bohai expanded in-house at Two IFC while Shanghai Pudong Development Bank leased 11,200 sq ft (lettable) at One Pacific Place in Admiralty for its newly established investment banking arm.
Outside of Central, insurers were active, leasing about 75,000 sq ft in Kowloon. Prudential expanded about 29,500 sq ft (gross) within The Gateway portfolio in Tsimshatsui while Sun Life expanded in-house at The Harbourfront Two in Hunghom (about 34,700 sq ft, gross).
Led by growth in the mid-range of the market, rents in Central grew
1.0% m-o-m. In contrast, rents in Tsimshatsui retreated by 0.8% m-o-m as
landlords softened their stance on asking rents in an attempt to boost occupancy amid mounting supply side competition from new office
developments in Kowloon East.
Sustained investment interest saw deal activity pick up with Henderson Land selling Golden Centre in Sheung Wan for HKD 4.37 billion (HKD 28,000 sq ft). Prosperity REIT was close to acquiring Kwun Tong View in Kwun Tong for HKD 1.88 billion (HKD 12,951 per sq ft) before being thwarted by a shareholder vote.
The government has released the first commercial development site in the Kai Tak Development Area (KTDA) (NKIL 6557) for sale via public tender, with a closing date in November. Located near the future Kai Tak MTR Station, the site has a maximum buildable GFA of 1.1 million sq ft.
Conditions of sale stipulate two buildings must be erected on the site with identical heights and exteriors. The completed development cannot be stratified for sale.
Market Update Summary - May 2019
- Economic uncertainly results in softer office rental growth The overall market recorded a modest net absorption amounting to 12,200 sq ft, behind a 71% m-o-m growth in new lettings. Leasing ...
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, h ...
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 ...
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 ...
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 ...
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 ...
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 ...