Vacant low rent rises to boost commercial power
The low vacancy rate of commercial buildings and the continuous increase in rents have become a major driving force behind the increase in the price of squatters.
As Mainland institutions have come to Hong Kong for business in the past two years, renting commercial units in the core area has caused rents to increase, while the vacancy rate has dropped further.
Super-territorial rents increased by about 5% year-on-year
According to statistics from the Rating and Valuation Department, the vacancy rate of the latest Central District commercial building is as low as 1.7%. According to the latest data from Knight Frank, the Central Super Grade A commercial building (such as Guojin Phase 2) has a lease rate of RMB 191, representing an increase of 4.5% year-on-year. %, while the traditional Central Commercial Building rent was also high at 155.2 yuan, up 5.7% year-on-year. In the last month, the Central China National Asset Management Phase II recorded a rental transaction involving the 3rd to the 30th floor of the property, which had an area of approximately 3,300 sq. ft. and was leased out at approximately RMB 200 per sq. ft., which was close to the historic high level of the building.
American Banking Center rents a hundred dollars
In the past, large-scale institutions rushed to rent units in the Central Commercial Building. They both took the lead in choosing the properties owned by the Grand Owners and Developers. Because of their relatively good management, the rental levels have been relatively high.
However, as vacant flats in commercial buildings are rarely bought, the rents for decentralized commercial buildings have also risen significantly in the past year. For example, a unit of the United States Banking Centre in Central recently had an area of approximately 1,303 square feet, a monthly rent of approximately RMB 130,000, and an average lease rate of approximately RMB 100. The rent of the Far Eastern Financial Centre in Admiralty has exceeded one hundred yuan. With the increase in rents, the rate of return on commercial buildings has increased, leading to commercial building sales.