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

Follow Us