High-speed rail effect
The high-speed rail is expected to drive Tsim Sha Tsui rentals. Colliers International said that the commercial buildings in Canton Road, Tsim Sha Tsui are expected to be driven by the high-speed rail. The rents will increase by 10%. The vacancy rate in the district’s prime commercial buildings will continue to remain low.
Chinese-funded companies continue to lease office space in Hong Kong. This year, there have been a number of big-handed rentals, such as the new commercial building of One Hennessy in Wanchai, which is owned by two Chinese-owned tenants, including the first time in Hong Kong. The mainland shared workspace operator (Kr Space) pre-leased 7 floors of approximately 83,000 square feet of floor space. In addition, the other big tenant of the building is the financial institution Shanghai Pudong Development Bank, pre-renting the building 98,400 square feet, expanding Make a new headquarters.
4th Floor, Central Exchange Square, renting 160 yuan
In addition, Super Jiasha is also rented by Chinese-funded tenants. The third phase of Central Exchange Square has recorded 4 floors of floor space, each floor covering an area of about 11,000 square feet, involving about 44,000 square feet, per square foot. 160 yuan to rent out. It is understood that the new tenant is China Merchants Bank. It is reported that the institution has leased the 46th and 48th floors of Exchange Square 2 in the early years. In 2014, the company expanded its business and leased a full-scale 45-floor 45-storey building with an area of about 13,000 square feet and a lease of about 130 yuan for use by its securities department. Now I have rented 4 floors in the same project and checked the information. The 4th floor was originally rented by Hainan Airlines. It was originally rented for 9 years, but it has been abandoned and rented by new tenants.
Tsim Sha Tsui rents up 9.3% in 63 years
According to Colliers International data, rents in various commercial districts in Hong Kong increased by an average annual rate. The latest leases in Central and Queensway were about 137 yuan, up 7.5% this year. Yan Huiping, general manager of Colliers International Business Services, said that this year’s two regions increased. Significantly, including Wan Chai and Causeway Bay, the lease was about $77.4, an increase of 10.3% this year. The other area was Tsim Sha Tsui. The latest rent was $63.3, an increase of 9.3% during the year. Yan Huiping analyzed that due to the high rental market and the small number of units in the core area, many tenants have transferred to the concession area, so the Wan Chai and Causeway Bay areas benefit and the rents are upward. As regards the Tsim Sha Tsui area, she said that the proportion of office buildings in Tsim Sha Tsui, which is being subsidized in the recent years, is on the rise and the trend is expected to continue.
In the market outlook, she is optimistic about the speeding up of the high-speed rail. The rental of commercial buildings in Canton Road, Tsim Sha Tsui has been accelerated. According to the statistics of the bank, the vacancy rate of the Tsim Sha Tsui is only about 1.4%. She said that because of the proximity of the high-speed rail station to Canton Road, the high-speed rail is about to open to traffic, which can drive the Chinese-funded commercial buildings in Harbour City. I believe that there will be room for increase in rents in Tsim Sha Tsui next year.