Hong Kong’s office sector growth hinges on China’s reopening
More than 3.2 million sq. ft of net floor area is expected in 2023.
Hong Kong’s office sector could be boosted by the reopening of China, Colliers reported.
In the fourth quarter of 2022, Colliers found that the leasing market was muted, resulting in a small net take-up.
This is despite a 353,000 sq. ft. (32,800 sqm), net take up, representing the first year with positive net absorption since 2019.
“The reopening of China’s borders will be a game-changer for the sector. As business travel resumes across borders, we expect more viewings and leasing enquiries which will likely strengthen office rent, with overall Grade A office rent estimated to increase moderately by 3% year-on-year,” Fiona Ngan, Head of Office Services at Colliers Hong Kong, said.
“Among the key submarkets, we expect the CBD to benefit the most with 5% YoY growth compared to a dip of 2.3% YoY at the end of 2022.”
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In 2023, Colliers expects over a net floor area of 3.2 million sq. ft. to come on the market with future supply pipelines concentrated in Kowloon and the New Territories.