Island, Kowloon office space leasing slowsBusiness | 30 Oct 2019 4:08 pm
Leasing momentum of Hong Kong Grade-A office space remained slow in September, as social unrest and the China–US trade war dragged on, realtor Knight-Frank says.
Grade-A office leasing transactions were recorded mainly in Kowloon East and Kowloon West, the latest Hong Kong Monthly Report, says.
On Hong Kong Island as many cost-saving Central tenants were looking for decentralised locations, demand for offices in Wan Chai and Quarry Bay was high, in particular, for large floor plates.
This trend is set to continue in the coming months. But over the long run, this could mark the moment when Hong Kong Island’s longstanding pivot towards Central fundamentally shifts towards peripheral areas.
In Kowloon, Grade-A office leasing transactions in September were recorded mainly in Kowloon East and Kowloon West. Demand was driven mainly by the electronics and sourcing sectors.
Many companies were seeking to reduce rental costs amid market instability. Some opted to downsize or consolidate their offices, or relocate from Hong Kong island to Kowloon.
Office demand in Kowloon is expected to remain fairly stable for the rest of the year, along with continued decentralization, Knight Franks says.