Less intense competition from traditional office operators lures them in.
Co-working spaces are focusing their expansion plans to Kowloon amidst low levels of competition from traditional office operators, according to CBRE Hong Kong Commercial Property Market Outlook 2018.
Co-working centres drove office demand in 2017 after leasing a combined total of 340,000 sq ft. Analysts are bullish that the flexible workspaces can only gather more momentum for the year ahead against a backdrop of high commercial property prices.
According to flexible workspace specialist Instant Group, there are a total of 202 flexible workspaces in Hong Kong but the market is set for a robust trajectory as even MNCs like HSBC are hopping onto the bandwagon after taking over 400 desks in WeWork’s Causeway Bay space.
However, rents are projected to stay flat in Kowloon as financial services companies from the Mainland still place higher value on Central’s business district with rents poised to retain its upward trajectory.
“Central is expected to remain the preferred location for Chinese enterprises. Low vacancy coupled with sustained demand for space from financial sector firms could potentially push up Central rents by a further 5%. Rents in other core submarkets are expected to remain broadly stable in 2018,” said
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