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Prime office vacancies soar to 21-year high

Vacant Grade A office space hit a 21-year high of about 7.8 million square feet in September, according to property agency, with a unit at Admiralty Centre available for rent at HK$38 per sq ft - close to the average office rent in Kowloon West.

The unit at Admiralty Centre measures 2,611 sq ft, according to agent. In comparison, average office rent in Kowloon West was HK$37.1 per sq ft in the third quarter, data from property agency.

Another agency expects Grade A office rents in Hong Kong will fall 15 to 20 percent this year, noting that Grade A office rents have fallen 13.8 percent in the first three quarters of this year.

the agency also estimates the vacancy rate of Hong Kong Grade A offices will reach 10 percent at the end of the year from 9.6 percent in the third quarter.

Meanwhile, high-street shop vacancies in four core districts - Central, Causeway Bay, Tsim Sha Tsui, and Mong Kok - rose 4.8 percentage points to 18.3 percent in the third quarter from the second quarter.

High street shop rents fell 5.7 percent quarter-on-quarter in the third quarter, agent said.

"With many social distancing measures remaining in place, retailers continued to adopt a cautious approach," agent said. "Significant rental drops since last year, however, encouraged some local brands to explore leasing opportunities at low costs that had not existed for many years. Should the local pandemic remain contained, we expect to see a slight rebound in leasing activity in the fourth quarter."

In the primary market, New World Development (0017) opened three show flats for The Pavilia Farm atop Tai Wai Station.

In the secondary market, a 649-sq-ft flat at Taikoo Shing in Quarry Bay changed hands for HK$13.7 million, or HK$21,109 per sq ft, after HK$1.3 million was cut from the original asking price.

Separately, the one-month Hong Kong Interbank Offered Rate, a benchmark for the local mortgage rate, rose to 0.44125 percent.

(The Standard)

For more leasing information of Admiralty Centre please visit: Leasing Information of Admiralty Centre

Desperate landlords offer renovation subsidies to lure tenants as Hong Kong’s vacant office space hits 21-year high

Some landlords have begun offering a one-off subsidy to help new tenants fit out their office space, according to property agency

The property services company says 7.8 million sq ft of office space – about the size of four Central Plazas – sat vacant in Hong Kong in September, the highest since 1999

Hong Kong’s commercial landlords are offering incentives such as renovation subsidies to lure tenants, as the amount of office space lying empty reaches the highest level in 21 years, according to a property services company.

Some landlords have begun offering a one-off subsidy to help new tenants fit out their office space, agent said.

“In some cases, the landlord would offer a subsidy of about HK$100 (US$12.9) per square foot,” an agent said on Wednesday.

The subsidy is attractive because relocation costs in Hong Kong are very expensive, agent said. For a prime renovation costing HK$1,000 per sq ft, the relocation cost may add up to HK$1,200 per sq ft after including the price of returning the office to its original state when the lease ends. The cost can be spread out to a monthly HK$30 per sq ft or thereabouts over three years.

“For most relocations with cutting costs as the objective, it takes a place with a rent of HK$30 per square foot less than” the original rent to justify the move, agent said. “Some offices do not have their head offices in Hong Kong. It is not that easy to approve that sum [for renovation].”

According to the property agency, 7.8 million sq ft of office space – greater than the size of four Central Plazas – sat vacant in Hong Kong in September, the highest since 1999. An additional 950,000 sq ft of surrendered space – returned by tenants before the lease expires – is available in the market, just shy of the size of the HSBC building.

Desperate landlords have been offering a broader range of incentives in lieu of rental discounts, to try to fill the space.

The agent said that some of the landlords have increased the commission they give to property agents from the normal one month of rent to 1.5 to 2 months’ equivalent. Some in Kowloon are even offering three months of rent.

“Of the total [amount of surrendered space], 70 per cent was surrendered by multinational corporations. This upward trend is expected to continue for the remainder of 2020,” another agent said.

Office rents in Central are expected to fall by up to 25 per cent this year, though the agent said the drop could actually be greater.

Agent said that landlords’ attitude to lease negotiations has been “quite flexible” for months and some are mulling more innovative solutions, like partnering with co-working operators to reduce vacancy.

Market anticipation of more listings of mainland Chinese companies in Hong Kong has so far not translated to heightened demand for office space with the projected expansion of professional services companies, agent said.

“We do not see a big trend yet. So far companies are tending to wait and see,” agent  said, adding that things may pick up after the first quarter of next year if the IPO boom continues.

The vacancy rate in Kowloon East remains the highest among all Hong Kong’s districts, at 15.4 per cent, according to property agency.

Compared to their counterparts on Hong Kong Island, landlords of premium offices in Kowloon are less willing to cut rents because at HK$20 to 30 per sq ft they are already the lowest, according to another property agency.

“Rental markets are being buffeted by corporate uncertainties and a tendency [of companies] to cut costs and downsize where possible,” agent said. “As long as Central maintains its significant premium over other districts, and given the current business environment, corporates will continue to look for cost-saving relocation options elsewhere on the island or in Kowloon.”

(South China Morning Post)








金鐘力寶中心海富中心 罕有連裝修放租



力寶中心低層戶 意向呎租40


海富中心逾2千呎 月租約10





皇都戲院大廈今拍賣 底價48億

新世界 (00017) 已併購約98%業權的北角皇都戲院大廈,將於今天早上10時進行拍賣,拍賣底價為47.776億元,物業地盤面積約3.62萬平方呎,物業坐落於北角英皇道、渣華道的南面及與電照道交界,物業現狀為一幢於1959年落成的商住樓宇,其中包括商場、桌球室及兩幢住宅樓宇,部分獲古諮會評為一級歷史建築物。

羅便臣道全幢物業 月底拍賣


另一測量師亦指,將於本月29日 (周四) 下午5時拍賣羅便臣道27E及27F號全幢物業,底價為2.34億元,物業現址為一幢1960年落成的6層高大廈,地下單位為商舖,現劃為住宅 (乙類) 用途,地盤面積3,822平方呎。


荃灣UML TOWER兩全層戶 月租叫價5.5萬

轉型中的荃灣工業區,由於區內交通極為便利,而且不乏逾千平方呎的單位供應,加上門檻吸引,吸引用家及投資者進駐,而新近放租的UML TOWER,兩個全層單位月租均為55,000元,並配備裝修,可望短時間內獲承租。

代理指,荃灣灰窰角街42至44號UML TOWER 2樓及6樓全層放租,其中,2樓全層面積約4,350平方呎,意向月租約55,000元,平均呎租約13元,而6樓全層面積約4,155平方呎,月租叫價同樣約為55,000元,平均呎租約13元。

附裝修 鄰近港鐵交通便



代理指,UML TOWER鄰近青山公路葵涌段,前往葵涌貨櫃碼頭及機場均甚為方便,而往返港珠澳大橋香港口岸,亦只需約20分鐘車程,同時亦靠近羅湖及深圳灣口岸,盡享大灣區發展機遇;至於荃灣區工商物業投資價值持續上升,加上物業自身及外在條件優越,料可享可觀的回報保證,能獲投資者及用家垂青。


甲廈780萬呎樓面空置 21年最多




舖租已調整 可望回穩



至於投資市場方面,今年第三季大手買賣 (1,000萬美元以上) 僅涉44億元,為09年後單季最低。代理認為,環球疫情影響基金、內地資金來港投資,故令成交金額偏低。對於金管局放寬工商舖按揭,代理認為由於放寬幅度不算高,加上銀行取態仍保守,對大額買賣市場即時推動不高,惟仍屬正面消息。多項物業中,代理較看好工廈市場,包括數據中心等,投資回報率較穩定,料可吸引財團承接。


甲廈空置率高達9.6% 代理:創11年來新高








另一代理指出,商廈租金按季跌3.4%,跌幅較上季的3.8%放緩,港島租金在第3季度跌5.8%,中環、灣仔 (銅鑼灣) 及港島東租金分別跌5%、6.6%及4.2%。該代理行預期整體甲廈租金全年將跌15%至20%。中環則將下跌20%至25%。

空置率由今年6月的6.02%升至9月的6.82%,中環及灣仔 (銅鑼灣) 空置率由第2季度末的5.6%及6.3%,分別升至6.8%及7.2%。港島東空置率雖然由2020年6月的1.9%升至2.4%。除了九龍東外,九龍區空置率同樣上升,尖沙嘴及九龍西空置率分別由6月底的4.2%及3.8%上升至6.0%及4.6%。