COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Rent for Grade-A office properties expected to rise 5-8%

However, limited availability remains an issue.

Overall rent for grade-A office properties are expected to rise by an average of 5-8% in the next 12 months even as supply is forecast to decline, according to an office sector report by Cushman & Wakefield.

Limited availability remains a problem as the report notes that two-thirds of buildings in Hong Kong enjoy a vacancy of less than 5%.

Overall rent for office properties are flat at $126.6 per square feet monthly in Q3 from last quarter’s $126.

Great Central rents are likely to inch higher over the near-term with leasing activity concentrated in newly completed Grade-A office developments.

The office market received 1.03 million square feet of new supply in Q3 with new office developments including 18 King Wah Road in North Point, Atelier K11 in Tsimshatsui, The Apex and Two Harbour Square in Kwun Tong.

Of the new supply entering the market over the next 12 months, less than 10% has been pre-leased.

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