CBRE today launches the Hong Kong Office Q4 2014 MarketView. For more information or to arrange interview with one of our experts please contact karen[email protected] / 2820 8108.
CBRE Outlook for Q1 2015
- Overall rents will remain stable. In Central, high occupancy and limited future vacancy of A1 buildings will encourage landlords to adopt a more aggressive stance towards asking rents
- Relocation will become increasingly more challenging as low vacancy leaves large-space users with fewer relocation options
- Some cost conscious occupiers will find it increasingly difficult to secure cheaper options in Kowloon, leading to some spill-over demand for revitalized industrial buildings
- Chinese financial institutions will remain the key driver of demand for prime space in the CBD
- An increase in the volume of new completions is expected this year but mainly concentrated in decentralized locations. Some new spaces have already been presold to owner-occupiers or investors, reducing options suitable for large MNCs
CBRE Highlights for Q4 2014
- Central and Sheung Wan continued to see steady leasing activity in Q4 2014, with several financial sector firms taking space
- Net absorption in the overall market was NFA of 83,000 sq. ft., bringing the full year figure to a positive 453,000 sq. ft., in contrast to the negative 392,000 sq. ft. in 2013
- City-wide vacancy edged up by 0.2 percentage points to 3.6% following the completion of The Octagon, providing 248,000 sq. ft. net of new space in Tsuen Wan
- Overall rents increased by 0.6% q-o-q, as rents improved both on Hong Kong Island and Kowloon side
- The Occupy Central protests had no significant impact on business operations and office leasing demand, although accessibility to some buildings in and around Admiralty was hampered
|
|
Overall (Q4 2014) |
Overall (Q3 2014) |
Central (Q4 2014) |
Central (Q3 2014) |
|
Vacancy |
3.6% |
3.3% |
4.4% |
3.9% |
|
Rents (Net effective) per sq. ft. |
HK$59.5 |
HK$59.1 |
HK$99.3 |
HK$98.5 |
Disclaimer:
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
