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 - 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 Square and Bank of Singapore leasing 11,200 sq ft at Three Exchange Square. Most of these transactions, however, were negotiated on space not immediately available, hence net take-up in Central for the month amounted to just 17,000 sq ft.
Lease expiries and the decision by China Life Insurance to return 187,500 sq ft of space at their newly acquired One HarbourGate West Tower to the leasing market resulted in the Grade A office market posting a net withdrawal of 212,700 sq ft in June; the greatest amount in a month since December 2013.
The impact of Manulife’s lease expiry at Manulife Financial Centre in Kwun Tong and on the Kowloon East office market was offset by the landlord’s ability to back-fill the bulk of the space as well as Avnet Technology’s relocation to Enterprise Square 5 (67,800 sq ft, gross) in Kowloon Bay. As a result, net take-up in Kowloon East returned to positive territory in June, amounting to 37,600 sq ft.
Having just secured a lease at Tower 535 in the previous month, US-based co-working space operator, WeWork, enlarged its footprint in the city further by committing to about 59,500 sq ft (gross) at Asia Orient Tower in Wanchai.
A tight vacancy environment continued to curb leasing activity with the total number of new lettings in Central dropping 55% m-o-m in June. Against this backdrop, Central rents edged up by 0.6% m-o-m to reach their highest level since the Global Financial Crisis. Meanwhile, rents in Kowloon East remained broadly stable as increasing supply side competition restricted the ability of landlords to push rents higher.
The government announced that it would release a commercial site (NKIL 6557) in the Kai Tak Development Area (KTDA) and a business site (AIL 452) in Wong Chuk Hang for sale via public tender in 3Q16. Located near the future Kai Tak MTR station along the Shatin to Central Link, NKIL 6557 has a maximum developable GFA of 1.1 million sq ft. The site is the first to be tendered within the KTDA, which is envisioned to provide at least 10 million sq ft of office floor space.
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 ...