Hong Kong Office Leasing

Housing Investment Consultancy
Office Leasing

November 2016

A precarious equilibrium of low but sustained demand and limited supply is resulting in moderate rental growth in core areas.

Central continues to see rent rises even though demand is not as strong as it was.

Cost-push pressure are driving Central tenants to Causeway Bay which in turn is losing insurance and retail tenants to Tsim Sha Tsui and Island East/South respectively.

Island East vacancy remains low thanks partly to demolition demand but also to Causeway Bay relocations.

Kowloon East is facing stiffer competition from Wong Chuk Hang on the Southside where rents are 10% cheaper on average and the new MTR line is set to unlock the area.

Sales market activity is hampering the delivery of stock into the leasing market, tightening availability and supporting rents.

 

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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