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 - 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 requirements. In one of the more notable transactions, Alibaba leased about 92,000 sq ft (gross) at Times Square in Causeway Bay to house their newly acquired media arm South China Morning Post.
In Central, the occupier market returned to growth with net take-up amounting to 45,100 sq ft as PRC financial services firms expanded and set up new offices. China Huarong, for example, expanded into Three Garden Road (about 9,000 sq ft, lettable) whilst Guangzhou-based asset manager SFUND leased a whole floor (9,400sq ft, lettable) at Bank of China Tower for its newly established operations in the city.
Tenant decentralisation gathered pace amid a widening rental gap between core and non-core office areas. A US financial services firm is relocating from Central to Taikoo Place whilst Freshfields Bruckaus Deringer reportedly has leased two floors at One Island East; which, if transacted, would mark the first UK ‘ Magic Circle’law firm to move out of Central.
The opening of the new South Island MTR line continues to stoke tenant interest in Wong Chuk Hang. Valentino leased 1.5 floors at 41 Heung Yip Road whilst Mayer Brown JSM is moving its back office to a whole floor at the same building from Central.
Limited availability and sustained PRC demand saw rents in Central climb 1.3% m-o-m, closing in on their pre-GFC record highs set in 2008. Meanwhile, rents in other major office submarkets, with the exception of Kowloon East, also trended higher against a tight vacancy environment.
In his 2017 Policy Address, the Chief Executive announced a number of initiatives to increase the commercial floor area in Kowloon East by 50.6 million sq ft, including increasing the development intensity in the Kai Tak Development Area over two phases.
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 ...