Supply of Dongjiujia Building increases, the future rent is expected to be stable

Supply of Dongjiujia Building increases, the future rent is expected to be stable

The new supply of the company is concentrated in East Kowloon. With the widening of the rent gap with Hong Kong Island and the high quality of the new type of building, the rental of the Kowloon East Commercial Building is very active in the coming year and the rent is expected to be stable.

2017 to 22 years for 6.53 million floors

The Government has been keen to build East Kowloon into the second core business district many years ago. With the construction of new commercial buildings in East Kowloon by major consortia, the commercial atmosphere has improved significantly in recent years. According to the data, a total of 2.25 million square feet of floor space was completed in 2017 and 18, and there were also 1.97 million square feet of new supply this year. From 2017 to 2022, East Kowloon will provide a total of 6.53 million square feet of new commercial buildings, the largest new supply area in Hong Kong.

In the past year, the commercial rental market has been sold in East Kowloon. Last year, DBS rented 200,000 square feet of the new commercial building in Two Harbour Square in Kwun Tong, making it the largest commercial building rental transaction last year.

In the coming year, the rental of East Kowloon will continue to be prosperous. The most important factor is the large rent gap with the core area. In the past few years, mainland institutions have leased commercial buildings in the core areas, pushing the rent of the Central Super-Axis to a historical high of over 200 yuan. Later, there was a chain effect, and the rents from the periphery to the east of Hong Kong Island also rose. Due to the high supply of East Kowloon, the owners are priced at a reasonable price when renting, and the rent is 30 yuan. In addition, there is little redevelopment in the core area and the quality of the building has begun to decline. In contrast, East Kowloon has a Grade A commercial building, which naturally attracts institutions to move in. Therefore, it is expected that the rental of Jiaxia will remain active this year, and the rent will be difficult to digest due to the supply. It is expected that there will be only a steady lack of significant increase.