15/5/2018

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 pre-commitments at Mapletree Bay Point in Kwun Tong, which received its Occupation Permit (OP) during the month. The largest deal reported during the month, involved DBS leasing seven floors (138,000 sq ft) at Two Harbour Square in Kwun Tong, consolidating their back office operations out of Millennium City 6 (Kwun Tong) and One Island East (Quarry Bay).

Leasing demand in Central was underpinned by expansion requirements from the banking and professional services sectors, accounting for 53% of new lettings during the month. PRC corporates remained a key driver of demand with Guotai Junan reportedly leasing 10,100 sq ft at Man Yee Building.

Rents in the overall market grew at their fastest pace in more than two years, up 1.1% m-o-m amid a tight vacancy environment and an active leasing market. With tenant demand focusing on Hong Kong East and Kowloon East—accounting for 76% of the new lettings, in terms of floor area, in April—rents to advanced by 3.1% m-o-m and 1.2% m-o-m, respectively.

The investment market for offices continued to reach new heights after whole floors in the high zone at Far East Finance Centre and 9 Queen's Road Centre were reportedly sold for HKD 660.0 million (HKD 61,111 per sq ft) and HKD 514.2 million (HKD 60,000 per sq ft), respectively, breaching the HKD 60,000 per sq ft level for the first time.

Articles
  • 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
  • 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 ...
  • 19/4/2016
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