Wanchai Causeway Bay Causeway Bay rents 1.5%

The fare increase in commercial rents in Wanchai and Causeway Bay has been on the rise in recent months. Jones Lang LaSalle announced the August Hong Kong Property Market Watch report. In July, the rent of Grade A office space in Wan Chai/Causeway Bay rose by 1.5% month-on-month, the highest increase in the past three years. The significant increase in rents was mainly attributable to the historical low of the vacancy rate in Jiaxia in the region falling to 1.6%.

Jones Lang LaSalle: New leases in Central rose more than 1x

The average rent of the “Wan Chai / Causeway Bay” estate increased to $68.7 per square in the previous month. The office portfolio in the area of ​​Canton Road in Tsim Sha Tsui increased by 1.3% month-on-month, driving the average rent of office premises in the district to increase by 1% to $51.5. The overall office rents continued to rise, rising 0.8% month-on-month. The report also pointed out that driven by the expansion demand of the banking and financial industry, the volume of new leases in Central has more than doubled. One of the outstanding transactions was the lease of 13,900 sq ft floor of Phase I of Central Exchange, and the 13,000 sq ft floor of Phase II of the Hong Kong Stock Exchange, which was the same as the expansion of Leasing.

Bao Yali, head of the commercial department of Jones Lang LaSalle, said that leasing activities outside Central were also active last month, mainly driven by the need to move away from the core business district, resulting in a total market absorption of 250,700 square meters last month. Due to the high rents of the office buildings in Central and the redevelopment of the Central Centre and the redevelopment of the Hutchison Building, a number of rentals were required. The tenants moved to the new commercial buildings in Wong Chuk Hang and Quarry Bay.