26/1/2018

Market Update Summary - January 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 new lettings in new builds in Kowloon contributed to net take-up in the
overall market amounting to 449,500 sq ft in December. Leasing activity in Kowloon East
continued to be dominated by upgrading demand. Technology company LazyBug Studio
reportedly leased a floor at Two Harbour Square (20,800 sq ft) in Kwun Tong, relocating out of
industrial offices in Hunghom.

• In Central, new lettings fell by 32% m-o-m, largely owing to the traditional holiday season. PRC
firms continued to dominate leasing activity, representing 67% of all new lettings. The pending
sale of The Center did not dissuade two PRC firms reportedly leasing 30,000 sq ft in the building.
• Central rents advanced by 0.4% m-o-m as vacancy tightened to 1.7% while rents in Hong Kong
East advanced by a market leading 0.8% m-o-m on the back of a tight vacancy environment;
excluding vacancy in the recently completed 18 King Wah Road.

• Investor interest in Grade A offices remained strong in December. A small office unit at
Convention Plaza in Wanchai reportedly exchanged hands for HKD 75.0 million or HKD 35,954
per sq ft, setting a new record high in the building, in terms of unit price.

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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