Hong Kong Office Leasing

Housing Investment Consultancy
Office Leasing

April 2018

Over the first quarter the office demand engine continued to run hot with rents in all districts except Kowloon East hitting record highs.

Central was again the main driver of rental increases, up by 2.8% over the first quarter of 2018, the highest rate of growth since Q1/2016.

The next major Grade A office project in Central will arrive around 2022/23 providing badly needed new supply.

Central vacancy may trend even lower this year after a 1.3% rate was recorded in Q1/2018.

The major availability remaining on Hong Kong Island is around 60,000 sq ft in 18 King Wah Road, while Lee Garden Three in Causeway Bay is already 98% let and One Taikoo Place in Island East is 75% committed with all remaining floors under negotiation.

Rents in Kowloon East have been rising despite a 6% vacancy rate, driven by the tight Hong Kong Island market, with asking rents of around HK$33 to HK$40 per sq ft per month for newly developed buildings.

 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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