Hong Kong Office Leasing

Housing Investment Consultancy
Office Leasing

February 2018

Central rents are barreling along, driven by PRC financial services demand and vacancy rates near historical lows.

Central and Wanchai/Causeway Bay were again the main drivers of rent increases, up by 1.4% and 1.5% respectively over the last quarter of 2017.

PRC firms are tending to favour a basket of Grade A offices in Central including IFC One and Two, AIA Central, Cheung Kong Center, Pacific Place One and Two and Exchange Square One, Two and Three where they account for 15% occupancy by floor area.

Shenzhen is still a preferred location for PRC tech firms, who see Hong Kong more as a platform for fund raising.

The current rental difference between Kowloon East and locations on Hong Kong Island, such as Wanchai/Causeway Bay and Island East, justifies the cost of relocation, allowing Kowloon East landlords to maintain or even raise rents.

Vacancy levels in the four traditional core office districts of Central, Wanchai, Causeway Bay and Tsim Sha Tsui are at, or close to, historical lows.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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