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HONG KONG

New Lettings in Central surge 47% in September

Strong demand from the banking and finance sector


​HONG KONG, October 29, 2017 –  New lettings in Central surged 47% m-o-m in September, according to research in JLL's latest monthly Property Market Monitor released today.​

Solid leasing demand from the banking and finance sector in the Hongkong Land portfolio contributed to new lettings in Central surging 47% from 45,100 sq ft in August to 66,300 sq ft last month. In one of the largest deals, The Stock Exchange of Hong Kong reportedly leased 13,900 sq ft at One Exchange Square for in-house expansion.​

The realisation of pre-commitments at K-11 Atelier, which was issued its Occupation Permit during the month, and ongoing tenant decentralisation contributed to net take-up in the overall market amounting to 295,000 sq ft in September. Notable movers included Covestro reportedly leasing 20,300 sq ft at One Island East and IMG leasing 13,000 sq ft at Dorset House, both relocating out of offices in Wanchai/Causeway Bay.​

Alex Barnes, Head of HK Markets at JLL, said: "Activity in general has picked up as attractive and low cost new supply comes to the market in Kowloon East and new buildings on Hong Kong Island are both completing and nearing completion stage.  These include 18 King Wah Road in North Point and One Taikoo Place in Quarry Bay, which are fielding strong enquiry from tenants. Leasing demand will remain strong as we head towards the end of year."​

Denis Ma, Head of Research at JLL, said: "The tight vacancy situation and resilience of the Central office market continues to draw the attention of investors with record high transaction being set in a number of office buildings, in terms of unit rate. We expect this trend to continue over the near-to-medium-term despite ongoing tenant decentralization."​

 

Grade-A Office Vacancy Rates
PeriodOverallCentral

Wanchai /

Causeway Bay

Hong Kong EastTsimshatsuiKowloon East
End-Sept 20175.1%2.1%2.5%3.8%3.3%11.3%
End-Aug 20175.1%2.1%2.7%4.0%2.4%11.4%

Source: Research, JLL

 

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