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Singapore office rents may overtake HK's

Singapore office rents may overtake those of Hong Kong for the first time since 2009, a sign that the Southeast Asian city-state is gaining an edge over its rival financial hub.

Average office spot rents in Singapore could rise 5 percent to 10 percent in 2022 on the back of a limited new supply, according to a Bloomberg Intelligence report.

Hong Kong's prime office vacancy rate may exceed 12 percent by the end of next year following a supply boom in decentralized districts, analysts Patrick Wong and Kristy Hung wrote.

The contrasting office market outlook reflects the impact of different pandemic management strategies adopted by the cities.

While Singapore is cautiously reopening and work from home remains the default arrangement, it has stopped targeting zero Covid-19 cases and begun easing border controls.

Hong Kong remains closed off to the rest of the world and has strict quarantine rules due to its elimination strategy, which has garnered criticism from global companies.

"We are now transiting towards living with Covid-19 and I know many or some prefer to open up more quickly, but we must do so in a very careful and step-by-step manner," Singapore's Minister for Trade and Industry Gan Kim Yong said at a multi-ministry task force briefing November 20.

Meanwhile, Hong Kong's plans to reopen the border with mainland China may be further pushed back to the end of next month.

Singapore's office market is also benefiting from the "stay-at-home" sectors given the shift in tenant profile in recent years from financial services to technology, a property agent in Singapore said. Hong Kong has been less competitive in attracting new tenants due to its perceived high costs, the agent said.

"With the Covid-zero approach on Hong Kong's part, multinational companies might continue to find challenges in hiring cross-border talent to its shores," the agent said. "That could have weakened the potential recovery trajectory in the occupier market."

(The Standard)


Hong Kong’s land-starved builders seek heritage projects for urban plots, cultural cachet

In the past, some might choose to demolish old properties, but now developers are keeping these structures voluntarily, says Hong Kong Institute of Architectural Conservationists executive

Buyers and renters of such developments will feel they are status symbols, property agent said

Hong Kong’s property developers have increasingly taken an interest in heritage projects over the past five years, as such developments enhance their corporate image and let them access valuable urban land.

The number of such projects has risen despite the higher costs and longer time frames involved, the vice-president of external affairs at Hong Kong Institute of Architectural Conservationists (HKICON) said.

“In the past, some might choose to demolish [old properties]. Redevelopment can be faster. But now some developers agree to keep [these structures] voluntarily,” the vice-president said.

The higher interest in heritage projects among builders comes amid an overall bull run in the property market in Hong Kong, the world’s most expensive real estate market. Prices continue to rise despite speed bumps created by social unrest and the coronavirus outbreak over the past three years.

Recent projects with a preservation element include New World Development’s State Theatre in North Point, Jessville in Pok Fu Lam and Kowloon Development’s plan to build high-rise flats at the site of the former St Joseph’s Home for the Aged in Clear Water Bay.

Heritage projects such as 1881 Heritage, a former headquarters of the marine police in Tsim Sha Tsui, attract bigger tenants such as Puyi Optical. The 130-year-old site was revitalised and transformed by Li Ka-shing’s CK Asset Holdings, and hosts luxury shops, fine dining restaurants, hip bars, a heritage hotel and the Heritage Hall, which allows visitors to learn about the history of the development.

Some tenants like such properties as they match their brands, and they may pay higher rent for that. Heritage can be positioned as an attractive selling point that will entice tenants.

Conservation projects cost more and can take more time because of additional government requirements and approvals. They are also more difficult because of constraints such as space and access for machinery. “If there is a good response, I believe others will follow suit,” property agent said. “I hope the government will drive more of such private projects [that involve the] preservation of historical buildings.”

In Hong Kong, declared monuments are protected against demolition by the law, but graded historic buildings are not, the agent said. So when building plans or applications are submitted for historic buildings, the government can suggest that they be preserved. The destruction of such buildings does not mean a breach of law. For example, the Union Church on Kennedy Road in Mid-Levels was demolished despite being graded as a historic building.

“Because of social responsibility and corporate image, some companies are willing to, in such situations, incorporate preserved heritage … in their redevelopment proposals,” a surveyor said.

“Buyers and renters will feel it is a status symbol,” the surveyor said, adding that people who were middle class or above liked such projects, as heritage was viewed as worth appreciation, and such a feature could distinguish these homes from regular housing estates.

But such projects could be challenging in terms of time frames, the effort involved and approvals, the surveyor said. More departments would be involved when it came to approvals, for instance. If some projects needed to be open for public visits, then they would have to satisfy government requirements for opening times and arrangements.

Every project also required extra investment in different shapes and forms. CLP Group and Sino Land’s Argyle Street project, which is now called St. George’s Mansions, needed to keep a clock tower and part of the building for public exhibitions, so there was a capital cost and an operating cost. In some situations, such as Jessville, a premium was needed to be paid to the government.

As urban land was scare in Hong Kong, developers did not mind working on heritage projects, another surveyor said. But there had been few successful cases in terms of commercial return, the surveyor added.

(South China Morning Post)


The North Face opens largest Asia store with 3,800 sq ft at K11, betting on Hong Kong’s retail recovery

The outdoor sports brand is opening a 3,800-square foot store in K11 Art mall in Tsim Sha Tsui, seen as a vote of confidence in local retailing industry

Volume and value of deals involving retail assets have grown 12.5 per cent and 52 per cent, according to property agency

The North Face, the US-based brand known for its outdoor apparel and mountaineering gear and equipment, is set to open its largest store in Asia-Pacific in what could be the first tangible sign that Hong Kong’s battered retail property segment is on the mend.

Opening on December 2, the store covering 3,800 square feet in K11 Art mall in the Tsim Sha Tsui shopping district comes as retailers eagerly look forward to welcoming Chinese tourists who could be back in large numbers after the border with the mainland reopens early next month.

“[The K11 store] is the largest store in Asia-Pacific and the broadest representation of the line we have anywhere, so we’re still very focused on bricks and mortar,” said Kevin Bailey, executive vice-president and group president for Asia-Pacific and emerging brands at VF Corporation, whose brands also include Vans, Dickies, Timberland, Supreme and Kipling. VF has 3,800 outlets in Asia.

The store’s opening is a spot of rare good news for Hong Kong’s retail segment, which has seen a number of luxury and mid-market brands close their stores in the city as visitors from mainland China started to dwindle in 2019, hurting their sales.

Last week, British luxury fashion house Burberry said it would shut its flagship store on Russell Street in Causeway Bay when its current 10-year lease expires in early 2022. It will be the third major global brand to close its flagship store on what was once the world’s most expensive shopping strip.

Prada closed its 15,000 sq ft outlet in June 2020, followed by lingerie maker La Perla three months later in September. Topshop, Gap and Victoria’s Secret also closed their operations in the city after they were hit by the anti-government protests in 2019 and later by the Covid-19 pandemic.

While Hong Kong retail sales have been improving in recent months, partly because of the government’s consumption voucher scheme, the reopening of the border between the city and mainland China is likely to further improve sales.

In 2020, total retail sales in the city declined by about a quarter as tourist arrivals fell 94 per cent. Retail sales in September rose 7.3 per cent year on year to HK$28 billion, helped by the HK$36 billion (US$4.6 billion) digital voucher scheme. In the first nine months of the year, sales have risen 8 per cent from the same period last year.

Recent investment trends in Hong Kong have hinted at improving fortunes for the sector. So far this year, the volume and value of deals involving retail assets have grown 12.5 per cent and 52 per cent, respectively, according to property agency.

In August, veteran investor Chang Miguel Yen-shee bought a shop on Pedder Street in Central for HK$710 million, while stockbroker Peter Yip Mow Lum paid HK$525 million for a Causeway Bay retail property, according to the agency.

“With an improving economy and a rebound in sales, retail assets have become increasingly sought-after by investors,” a property agent said. “We believe the next six months will be a good time for investors to bottom-fish” when prices are still negotiable, the agent added.

Another agnet said that physical stores still serve retailers for more experiential and brand-building purposes.

Categories such as food and drinks, spa, salons and learning centres are also likely to take up more retail space in the city, another agent said.

(South China Morning Post)














上環中遠大廈 樓面大配套足



樓齡約23 每層逾2萬呎




處中環上環之間 美食選擇多










灣仔海港中心全層 意向呎租50


具基本裝修 月租約70








近期商廈租賃趨活躍,業內人士預計未來逐步回穩,有外資金融公司提早續租甲廈,美銀 (前稱美銀美林) 或相關人士提早近一年續租中環長江集團中心共7層樓面,月租1677萬,較兩年前租金加幅不足3%。


上述由美銀續租的物業,為長江集團中心37 至40 樓4 層、以及52 、53 、55樓,合共7層樓面,總樓面約15萬方呎,美銀於2014年9月起租用,租約期8年,明年8月底約滿;當時的租約條款為首3年 (即2014年9月至2017年8月) 月租1497.9萬、每呎約100元,第4、5年 (即2017年9月至2019年8月),月租提升至約1632.7萬,平均呎租約109元,再其後3年 (即至2022年8月底前) 則按市價計算。


美銀於本月初與大業主長和系提早訂立新租約,上述7層樓面全部續租,租約期由2022年9日至2028年8月底,租約期6年,另有3年續租權,首3年月租約1677.6 萬呎租約112元,意味較2017年9月至2019年8月期間,租金只高約3元或2.7%,第四年起則按當時市值計算。







甲廈租賃氣氛改善料明年初租金見底 代理:中環區料率先回穩








該代理亦指出,受多項不明朗因素困擾,中資企業近年承租步伐明顯放緩,令市場出現滯後 (Pent-up demand) 狀態 ,中港兩地可通關,中資企業勢將「回歸」,並為甲廈市場的承租主力,環顧現今租金明顯處於低水平,對中資企業甚具吸引力,故料中環區甲廈租金於明年可率先回升。

當被問及明年甲廈租金走勢時,該代理回應指,甲廈整體租金從高位大幅回落約26%,中環為當中「重災區」,該區跌幅達30%,唯近期跌幅已見明顯放緩,因去年全年跌幅為20% (今年至今僅約6%),故可以預期現時市場離底部不遠,市場走勢將視乎疫情發展,料明年首季甲廈租金將「見底」,屆時租金可現低位橫行,及後有機會出現輕微升幅。





甲級寫字樓租務改善 價量皆升



10月整體甲級寫字樓市場錄得107,200平方呎的淨吸納量。市場錄得更多擴充成交個案,而租戶在選擇辦公空間時會重視靈活性和健體配套設施。其中,共享辦公室的IWG集團再拓據點,集團指,將於銅鑼灣Tower 535 開設Spaces在港的第6個中心,新址總面積達2.34萬平方呎,計劃2022年1月開放。該中心提供超過300多個辦公位置及供1至60人使用的私人辦公室,另有商務俱樂部供企業會員作流動辦公和非正式會議之用。

IWG集團租 Tower 535 兩層

是次涉及租用樓層為 Tower 535 的11樓及12樓全層。據了解,該批樓面原由共享空間辦公室品牌WeWork租用,該品牌早年大手租用物業8層合共約9萬平方呎樓面,早前全數遷出,現由另一品牌頂上租用其中兩層。

中區方面,市場上有擴充及升級個案,中環交易廣場三座16樓全層,面積約1.1萬平方呎,以每呎約120元租出。按呎租計,較高峰期回調約2成。新租客為外資機構Lombard Odier,屬瑞士私人銀行。據悉,該機構亦租用置地旗下交易廣場二座39樓,約7,500平方呎單位,如今因業務擴充,租用3期全層單位。

另同區遮打大廈5樓單位,實用面積約1.5萬平方呎,實用呎租約130元。新租客為Schonfeld Strategic Advisors,屬美國對冲基金。該機構原租用同區萬宜大廈,面積約8,000平方呎辦公室,如今面積擴充近1倍外,並作出升級。









商廈上月81買賣 8個月低


該行代理表示,股市在低位整固,暫無再大跌,加上通關有望,料整體氣氛改善亦可帶動商廈市道回暖。根據土地註冊處數據,2021年10月份全港共錄81宗商廈買賣登記 (數字主要反映2至4星期前商廈市場實際市況),較9月份的91宗減少11%,連跌兩個月並創8個月新低,反映當月觀望施政報告及節慶假期較多等因素而令登記進一步減少。



沙田僅1 急跌92%







勉勵龍全幢200萬租出 華潤物流收3.4厘回報










九龍城龍崗道鋪2600萬售 正八集團廖偉麟沽貨四年升值31%