East Kowloon potential of Hong Kong’s largest business district

CB Richard Ellis’s latest research report pointed out that the past two decades, East Kowloon non-core business district gradually forming, the future will become the largest office in Hong Kong district market. However, due to the next one or two years for the supply peak, next year rents have up to 10% downward pressure.

Chen Jinping, director of Hong Kong, South China and Taiwan, said that although Central China is the core business district of Hong Kong, the building age is generally high, many years have been over 30 years, due to the long vacancy rate in the district, High innovation, owners rebuild desire lower.

Only one quarter of the traditional core business district

Mr Chan said that in the next five to ten years, the supply of office space would be concentrated in emerging markets such as East Kowloon, West Kowloon and Wong Chuk Hang. When the Middle East Kowloon is the most development advantage, the government will vigorously develop the area, in 2021 to 17.2 million square feet of Grade A office building, when the Kai Tak Development Zone project completed, office space will increase to 29 million square feet, formal Replacing Central as the largest commercial district in Hong Kong.

The new Grade A office building hardware has the advantage of adding $ 25 to $ 35 in the latest feet of East Kowloon, only one quarter of the traditional core business district, making the international Companies are increasingly willing to set up large offices or even headquarters in East Kowloon. However, mainland companies to rent office space, is still concentrated in the core area of ​​Central.

Despite the development of long-term development in East Kowloon, Mr Chan reiterated that the new floor was to be digested by the market. The vacancy rate for next year was about 10.6% to 15% to 16%. Rent will fall by 5% this year. There are 5% to 10% down space.