Take-up for offices for lease plunged 80% in 3Q12

Grade A office rents meanwhile grew 1.5% after 3 months of decline.

According to Colliers International, in view of uncertain economic outlook, individual large tenants downsized their premises but still prefer to stay in the same district. The overall net take up fell 80% QoQ to 111,000  sq ft in 3Q 2012, which reflects the slowdown in leasing activity especially in Central/ Admiralty.

The overall Grade A office rent rebounded in 3Q 2012 after falling for three consecutive  months, rising a solid 1.5% QoQ. Meanwhile, the average Grade A office rent in Cetral/ Admiralty showed its first quarterly gain since 3Q 2011, rising 0.8% QoQ in 3Q 2012 to  HK$ 98.8 per sq ft.

Colliers International notes that the outlook for the Hong Kong Grade A office market has been brighten up due to the  positive market sentiment and increased leasing enquires. On the back of scare supply  and positive demand, overall Grade A office rents are projected to climb 4% over the  next 12 months.