Demand for Central Commercial Building is high 134.3 high
The rental of commercial buildings in Hong Kong continues to peak. DTZ noted that the average rent for the Central Plaza commercial building rose by 2.4% quarter-to-quarter to RMB134.3 per month, setting another record high. It is estimated that the annual rent could increase by 7% to 9%.
According to Xiao Lianghui, managing director of DTZ, Hong Kong, due to strong leasing demand, rents in all districts of the district recorded an increase in the first quarter. The overall increase was 1.8% in the fourth quarter. The Central Plaza continued to outperform the market.
This year, the momentum is up nearly 10%.
He estimates that rents for commercial buildings in Central District will increase by 7% to 9% this year. Inferring from the first quarter’s trend, it should reach the target. Due to the increase in rents in Central, the pace of relocation of multinational institutions in Central China has been accelerated. In the future, new lease transactions in the region will be dominated by Chinese-funded institutions, especially the hiring of Super Grade A commercial buildings. Many new commercial buildings in Kowloon East were completed. The occupancy rate rose to a new high of 14.7% in the past eight years. However, the rental of new commercial buildings in the area was satisfactory. As a result, rents continued to increase by 1.6% to 35.4 yuan.
Luo Yingming, executive director of CB Richard Ellis Hong Kong Advisory and Trading Service Office Building, said that the Grade A commercial rental market was booming with a net absorption of 729,900 square miles in the first quarter, the highest level since the second quarter of 2015, while rents rose by 2% quarter-to-quarter . The vacancy rate in Central has dropped to 1.1%, the lowest level since September 2015, so the trend of companies moving out of the core business district will continue.