COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Prime office rents extend run after rising 5.2% in Q4

Admiralty and Sheung Wan led the charge after rising 11% and 9% respectively.

Prime office rents in one of the world’s least affordable city to rent and own properties extended their steep climb after rising 5.2% YoY and 0.7% QoQ in Q4, according to Knight Frank’s Asia-Pacific Prime Office Rental Index.

This is equivalent to a monthly rate of US$209.8 per square foot.

Admiralty and Sheung Wan are giving Central a run for its money after the two districts posted the largest growth amongst districts on Hong Kong Island after increasing 11% YoY and 9% YoY respectively.

Not to be outdone, Central rents are also expected to rise between 2-5% this year as companies from Mainland China scramble for prime office space amidst limited supply.

Office net take-up rose to 209,900 sqf in January as other districts move towards decentralisation to avoid high office rents in traditional CBDs with Kowloon and Hong Kong East emerging as the most attractive alternatives to Central. 

This follows an overall trend of higher office rents across APAC led by Jakarta, Manila, Sydney, Mumbai and Singapore against a rosier future outlook. “Relatively strong economic performance has sustained active office leasing markets across Asia-Pacific in 2017. Growth in demand from co-working and technology-related spaces will continue to be a prominent trend in 2018 across most of the region’s key markets,” said Knight Frank head of research for Asia Pacific Nicholas Holt. 

Photo from WiNG - Own work, CC BY 3.0

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