Market Update Summary - Dec 2019
- 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 - Dec 2019
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 of the core submarkets of Central, Wanchai/Causeway Bay and Tsimshatsui, while both decentralized markets tightened slightly. While leasing activity remains subdued, there were some examples of expansion in the insurance industry. For instance, FWD reported leased 25,800 sq ft at Millennium City 1 in Kwun Tong, while AIA leased 18,700 sq ft at The Gateway Tower 5 in Tsimshatsui to accommodate expansion requirements.
In Central, net take-up has remained negative in every month since October 2018 as vacancy now reaches its highest point in more than 4 years. Leasing activity was largely dominated by tenants seeking more cost effective options within the submarket. Notably, Huarong (Macau) reportedly leased 20,300 sq ft at One Pacific Place, while Guosen Securities leased 13,500 sq ft in the same building; both relocating out of Grade A1 offices in Central.
The rental decline trend continued in November as rents in the overall market dropped by 0.6% m-o-m. Elevated vacancy led to the sharpest rental decline (-1.3% m-o-m) in Kowloon East, followed by Wanchai/Causeway Bay (-1.1% m-o-m).
The office sales market remained quiet as investor sentiment continued to be impacted by internal and external factors. Among the more notable transactions, a small unit in the mid-zone of Bank of America Tower reportedly changed hands of HK48.8 million (or HKD42,920 per sq ft). The reported unit price was roughly 20% lower than the price paid for a small unit in the mid-zone of the same building that transacted in March 2019.
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 ...