Hong Kong Office

Asian Cities

1H 2017

 

Grade A offices
Hong Kong has firmly established itself as the most expensive office market in Asia and CBD rents are now at an all-time high, after registering 4.2% growth in 2016. On Hong Kong Island, rental growth generally remained in positive territory throughout 2016 driven predominantly by a lack of available stock. Grade A vacancy in the island’s main business districts ended the year just shy of 2%, very low by historical standards.

Take-up
Take up last year came in just below the five-year average at one million sq ft across the Grade A office market as a whole but vacancy rose in Kowloon as new supply in Kowloon East put pressure on rents on that side of the harbour, which showed signs of faltering as early as Q2/2016. While vacancy in Tsimshatsui (1.6%) and the Western Corridor (2.6%) remained low, Kowloon East recorded 4.5% of empty space representing some 460,000 sq ft in total, a figure we expect to rise over 2017 and into 2018.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Savills Two Exchange Square, 23/F

+852 2842 4573

 

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