Hong Kong Grade A Office, Q2 2015 Strong financial sector demand drives surge in net absorption

Hong Kong Grade A Office, Q2 2015
Strong financial sector demand drives surge in net absorption

 

Highlighted key notes are as follows:

 

  • Hong Kong Island enjoyed one of the strongest quarters in recent years in terms of leasing activity.  Net absorption for the period was 426,200 sq ft, the highest in a quarter since Q3, 2010.

 

  • Most activity took place in Greater Central (Central, Admiralty & Sheung Wan combined).  Financial sector firms continued to drive leasing demand.  Vacancy in Central dropped substantially.

 

  • Demand for space in Kowloon was also strong, with the banking sector as well as retail and sourcing firms particularly active.

 

  • CBRE expects office leasing market sentiment to remain positive in H2 2015 and into 2016.  The Shenzhen-Hong Kong Stock Connect scheme and the Hong Kong - China mutual fund recognition scheme should support headcount and office demand in the financial sector.  Firms from mainland China will remain a key demand driver in the CBD.

 

  • The substantial improvement in leasing momentum and decline in vacancy observed since the beginning of Q2 2015 has prompted CBRE to hold a more positive view towards rental growth in 2015. The next 6 months shall see rents in the overall market growing by a similar magnitude as that recorded for the first half of the year (4.6% year-to-date).

 

Click here for CBRE Marketview of Hong Kong Grade A Office, Q2 2015

 

 

 

 

 

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