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 o ...
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 in 2015.
Coupled with expiring leases, all major office submarkets with the exception of Hong Kong East recorded net withdrawals, leading the overall occupier market to contract by 26,600 sqft, its worse performance in four months. In Hong Kong East, the vacancy rate dipped below 1.0%, largely supported by the Government’s lease of a whole floor at AIA Tower in North Point.
In Central, rents climbed 1.0% m-o-m in March, boosted by increases at the top-end of the market. Spot rents at AIA Central spiked up by over 15% after a handful of transactions in the building were completed at rentals in excess of HKD 150 per sq ft per month.
Investment volumes in Central accounted for about 60% of all transactions in March, as investors continued to eye office properties in the submarket to ride the rental recovery. Notable transactions included the sale of a whole floor at Lippo Centre Tower 1 in Admiralty for HKD 372 million (HKD 24,826 per sq ft) via equity transfer.
•In the primary sales market, Billion Development has sold 15% of the 91,600 sq ft office portion made available for sale at 3 Tai Yau Street in San Po Kong since being launched the previous month, achieving prices in the range of HKD 9,200–11,800 per sq ft.
The Planning Department has submitted three proposals to the Government on the redevelopment of two government sites at Sai Yee Street in Mongkok. Adjacent to the Mongkok East MTR station, the sites could potentially provide about 1.3 million sq ft (gross) of commercial/office space. However, demolition works are not expected to be completed until the end of 2020.
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 - 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 ...