Central and Admiralty office rents projected to trump other districts

Due to increasing mainland corporates.

It has been noted that mainland corporates continue to expand into Hong Kong in the last two years, which has pushed the vacancy rate in Central and Admiralty down to just 1.7% in Q4 2015.

According to a research note from Colliers, on the back of sustained demand and the low vacancy rate, rents in Central and Admiralty increased 5.2% quarter on quarter (QOQ) in Q4 2015.

Colliers anticipates rental growth in Central and Admiralty will continue to outperform other districts over the near term as more and more mainland corporates flow into the city.

Here's more from Colliers:

The demand for office premises in Tsim Sha Tsui and Kowloon East from sourcing and trading companies will remain soft.

Nevertheless, the demand from insurance companies will provide some support for the performance of rents in Tsim Sha Tsui and Kwun Tong. Kowloon Bay will be the weakest link in 2016 due to an oversupply issue.