Hong Kong Office Leasing

Housing Investment Consultancy
Office Leasing

April 2019

A robust office market seems to have shrugged off earlier concerns over interest rates, the trade war and financial market turbulence.

Central replaced Wanchai/Causeway Bay as the main driver of growth, with rents increasing by 2.9% during the quarter.

We have noticed that Island rents have outperformed Kowloon rents for four consecutive quarters.

Despite worries over the trade war, stock market volatility and interest rate rises, the office leasing market has remained stable and tenants are no longer downsizing.

Coworking operator KR space pulled out of all its leasing deals in Hong Kong while WeWork withdrew some commitments despite expanding actively elsewhere.

North Point will see two new office buildings completed in 2019 totalling over 600,000 sq ft.

Tenants now pay more attention to building quality and age as the accessibility of business districts has been greatly enhanced by new transport infrastructure over recent years.

Record low vacancy rates have helped maintain the bargaining power of landlords, supporting the slight rise in office rents observed over the quarter.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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