Central Harbour Plaza rented 131 yuan year-on-year increase of 1.3% CB Richard Ellis: Vacancy rate was only 1.5%
In recent months, the price of A-Ha Building has repeatedly broken. The rental market dominated by users has also shown good performance. According to CB Richard Ellis statistics, the average rent for the first quarter of this year rose to 131 yuan, an increase of 1.3% year-on-year. Institutions continued to dominate, and the mainland shared space to actively expand in Hong Kong, and recorded major leasing.
Luo Yingming, executive director of CB Richard Ellis Hong Kong consultant and transaction service office building, said that the rental market in Hong Kong’s “Hajiajia” building is booming. As of the end of March this year, the average occupancy of Central Haicang was RMB 131, a record high, rising 1.3% year-on-year. The latest vacancy rate fell. To 1.1%, which is the lowest record since September 2015, it is difficult for tenants to find suitable office buildings even if they are willing to pay more rent. This explains why the trend of their escaping from the core business district continues. Recently, some companies that provide professional services, such as Goldman Sachs and Mason Securities, have moved from Central to Phase III of Causeway Bay.
In Hong Kong Island, the average rent for A-Ha is 88.7 yuan, up by 2% quarter-to-quarter. The net absorption of the entire Hajiasha reached 722,900 sq ft, the highest since the second quarter of 2015, and the rent also rose by 2% quarter-to-quarter. The financial industry and the sharing office led the first quarter of office leasing activities. The low vacancy rate in the Central District is showing that there is little inventory and limited supply in this area, which has slowed the leasing activity of Chinese-funded enterprises. In addition to Hong Kong Island, the newly completed commercial buildings in Kowloon, such as the Hong Kong HSBC Centre in Kowloon Bay and China Merchants Tower in Cheung Sha Wan, have quickly become hot spots for office leasing.
Enterprises frequently migrate to non-core areas
In the first quarter of this year, the number of industrial and commercial shops rose, involving an amount of HK$37.1 billion, up 48% year-on-year from 25 billion in the same period of last year. However, it was down significantly from the fourth quarter of last year. The amount of investment in the fourth quarter of last year was 101.8 billion yuan, including There were 40.2 billion transactions in the Central Centre and 17 stores in The Link, a total of HK$63.2 billion. In the same period, a large number of large blocks of real estate transactions were also recorded. As a result, trading in the fourth quarter of last year was particularly prosperous.
The average rent for Hong Kong Island is 88.7 yuan.
In the first quarter of this year, transactions in industrial and commercial shops involving more than US$10 million (excluding pure land sales) recorded 21, 34 and 22 cases respectively, a total of 77 cases, which was significantly higher than the 14, 35 and 21 cases in the same period of last year. The number of office buildings in the first quarter was outstanding. The total volume of transactions was HK$17.6 billion, including nearly 10 billion commercial buildings at 18 Jinghua Road, North Point, followed by WW Square in Wanchai involving nearly 2.45 billion yuan, and there was a strong atmosphere of stratification and demolition. Including the fund’s purchase of the 9th floor of the Sinbo International Center, and the sale of Yip International Plaza No. 38, Weiye Street.
In the first quarter, domestic investors withdrew from record-breaking deals and took over well-funded local investors. HNA sold three sites in Kai Tak to two local developers, while the Central was resold to another Chinese real estate developer and local consortium. (Because buyers withdrew from the buyer, the number was not counted in the first quarter.)
The absorption amount exceeded 729,900 square feet.
Wang Zhenkang, executive director of CB Richard Ellis Capital Markets in Hong Kong, said that in the first quarter, the highest volume of office transactions, followed by industrial and retail real estate transactions, the industrial market is also booming, the market reconstruction or change the use of industrial buildings, recorded during the period The entire building was traded. In the first quarter, it recorded a turnover of 37.1 billion yuan, which was the third highest in history. Offices accounted for a full 67%, industrial 21%, and retail 13%.
Li Shangwen, a senior director of CB Richard Ellis Industrial and Logistics, said that the forced relocation led to a large-scale leasing in this quarter. A local beverage company leased Tuen Mun Universal Logistics Plaza with an area of approximately 331,000 sq.ft. to expand the Central Kitchen because of the estimated location of the new site. Yuen Long Centre may change the use of land. The overall industrial logistics market has benefited from good trade development. For example, third-party logistics companies Shun Fung and DHL have expanded their presence in multiple locations in Hong Kong.
He also said that the low vacancy rate caused the owners not to put pressure on rents, and some owners even deliberately vacated the units and reserved them for large-scale tenants with expansion needs. The overall warehouse rental increased slightly by 0.2% quarter-to-quarter.