CBRE publishes the Hong Kong Office MarketView Q2 2015.
Rhodri James, Executive Director, Office Services, CBRE Hong Kong commented, “Leasing market sentiment will remain positive in H2 2015 and into 2016. The stock connect and mutual fund recognition schemes should support headcount and office demand in the financial sector, particularly amongst Chinese firms who will remain a key demand driver for space in the CBD.”
CBRE Outlook for Q3 2015
CBRE forecasts that overall market rents will increase by a high single-digit to 10% this year. Central landlords will enjoy the strongest rental growth of 10-15%, while some submarkets are expected to benefit from the spillover effect from the CBD
Demand from Chinese firms for space in prestigious buildings will result in even stronger competition for Central Grade A1 buildings, most of which are at near-full occupancy
More pre-leasing activity involving secondary space is expected in the coming quarters
Cost conscious occupiers are expected to become more willing to lease space in revitalized buildings
Landlords will continue to enjoy a strong negotiating position in the remainder of 2015. No major new supply will be expected in the market until 2017
CBRE Highlights for Q2 2015
Overall office rent recorded a 4.6% growth in H1 2015
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. (NFA) the highest in a quarter since Q3 2010
Most leasing transactions on Hong Kong Island took place in Central, Admiralty and Sheung Wan. Financial institutions continued to drive leasing demand
In Kowloon, with relatively higher availability of space, Kowloon East saw more leasing transactions in this quarter. Retail and sourcing firms were particularly active
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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