9/10/2018

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, however, was offset by returning space in Kowloon East, resulting in net take-up amounting to just 28,300 sq ft in the overall market for the month. Returning space in Kowloon East is likely to continue to weigh on overall net take-up over the short-term due with about
452,000 sq ft (equivalent to 2.7% of the submarket’s stock) to be vacated upon lease expiry over the next 12 months.

Despite new lettings in Central dropping by 51% m-o-m, a number of finance related firms sought to expand in the submarket. Most notably, BitMEX, a cryptocurrency trading platform, reportedly leased the whole of the 45th floor (19,200 sq ft) at Cheung Kong Center, paying a monthly rent of HKD 225 per sq ft, a record high in the building. BitMEX will be relocating out of a non-Grade A office in the New Territories. Fullshare Holdings expanded in-house to 9,700 sq ft at Admiralty Centre Tower 1.

Grade A office rents advanced by 0.7% m-o-m in August with Wanchai/Causeway Bay posting the strongest growth, up 1.0% m-o-m, on the back of robust demand. In Central, rents grew by 0.9% m-o-m while rents in Grade A1 offices grew by 1.6% m-o-m amid tight vacancy.

Pricing in the strata-titled sales market remained hot with Mexan Limited announcing the purchase of a small unit in the high zone of Far East Finance Centre in Admiralty for HKD 165.0 million, or HKD 59,353 per sq ft, the second
highest unit price in the building.

Articles
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  • 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. ...
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  • 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 ...
  • 20/5/2019
  • 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 ...
  • 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 pre-commitmen ...
  • 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 new ...
  • 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 ong ...
  • 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 at ...
  • 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
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