COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Wanchai office market continues to outperform Central in September

It led the sector in terms of rental growth for three straight months.

The office market of Wanchai/Causeway Bay continued to shine after office rents in the district rose 1.6% MoM in September to book the largest growth amongst major office submarkets for the third consecutive month, according to real estate consultant JLL.

“Growth in the submarket was underpinned by an extremely tight vacancy environment that remained at a low of 1.6%, allowing landlords to push rents further higher,” the firm said.

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Although leasing costs in Central also rose by 0.9% on the back of heated demand from banks and financial services firms, it failed to hold against the growing dominance of other districts as the decentralisation momentum picks up.

“Owing to tenant decentralisation and the realisation of pre- commitments at One Taikoo Place in Quarry Bay, net absorption in the overall market amounted to 740,900 sq. ft. in September. Decentralisation continues to be largely met in recently completed offices in Kowloon East,” Alex Barnes, head of markets at JLL said in a statement.

Office vacancy rates held steady at 4.2% in September although they let up for most markets including Central, Hong Kong East, Tsim Sha Tsui and Kowloon East.

Photo from Mstyslav Chernov - Self-photographed CC BY-SA 3.0

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