COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Hong Kong's prime office rents edged up by 2.8%

This is the eighth consecutive quarter of growth.

Prime office rents in Hong Kong grew for the eighth consecutive quarter, with a growth of 2.8% in Q4 2016, according to Knight Frank's Asia-Pacific Prime Office Rental Index.  

Looking ahead, the uptrend for office rents on Hong Kong Island is likely to continue in 2017, with and Central set to outperform the wider market, given the tight availability of space.

Knight Frank's index across Asia Pacific increased 1.3% quarter-on-quarter and 2.0% year-on-year in the last quarter of 2016.

The increase in the index was the result of rising rents in 12 of the markets over the quarter, with rental declines experienced in seven of the 19 markets tracked. 

Across the region, international companies are taking a cautious approach to mitigate the negative effects of an uncertain global economy.

Increasingly, markets with robust absorption and sustained demand from a diverse group of local firms will continue to experience growth.

Over the next 12 months, we expect rents in 12 cities out of the 19 tracked to either remain steady or increase, which is down from 14 in our previous forecast

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