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When the new MTR opens, Wong Chuk Hang will be just two stops from Admiralty, with reasonable office rents and increasing lifestyle attractions
Wong Chuk Hang means “Yellow Bamboo Pit” in Cantonese; now, with the area’s ongoing transformation and upcoming easy access via the new MTR South Island Line, it’s earning a new name: Island South. Office rents of around HK$20-HK$25 per square foot might be the first reason companies look here, but an increasing number of tenants are signing up for the vibrant lifestyle scene that is emerging in this traditionally industrial area.
Restaurants, hotels, and shopping destinations are popping up, as well as a thriving art and design community. Simultaneously, blue-chip developers are revitalising the area with a cluster of new office buildings being completed from now until 2019, many of which are being redeveloped from industrial buildings. Swire Properties, K Wah, Sun Hung Kai Properties, Henderson Land and H ip Shing Hong all have projects completed or under development, offering alternatives to Central’s sky-high office rents, recently named some of the most expensive in the world.
“Hong Kong Island has just over 2 percent vacancy, and with such a tight market, Island South is very attractive for large-space users such as insurers, banks and professional service firms, as well as architects and engineering companies,” says Paul Yien, Regional Director, Markets at JLL Hong Kong. “The amount of stock is growing, and new buildings in the area have floor plates running from 6,000-12,000 square feet, so companies have the opportunity to lease multiple consecutive floors. Imagine the ability to have your mid or back office operations under ten minutes away from Central by MTR.”
The emerging Island South area is following in the footsteps of Kowloon East and other industrial areas that have made the transition to office hubs.
“Transformation, transportation, the lifestyle amenities, and reasonable rent are reasons enough for tenants to turn their attention to Island South,” says JLL’s Yien. “Space in new buildings is leasing more quickly than even I expected, so there are definitely advantages to in getting into this district early”.
For more information on Island South office leasing opportunities, visit our office leasing webpage, or contact Alex Barnes or Paul Yien.
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