The market is expected to slow down towards the year end.
Most leasing transactions in Kowloon involved relatively small units of around 4,000 sq ft in July, mainly in Kowloon East and Kowloon West. Tenants were mainly from the sourcing and IT industries.
With many major companies having moved their offices to Kowloon, Knight Frank said small and medium-sized enterprises are following suit, as they prefer to stay close to their business partners. Meanwhile, amid increasing supply, landlords are more willing to offer incentives to attract potential tenants.
"We maintain our previous view that Kowloon rents will continue to face downward pressure during the remainder of 2017. More leasing transactions will be concluded after the summer, however, before the market slows down again towards the year end," noted Knight Frank.
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