Low rents in Kowloon Commercial Building
The rents of commercial buildings in the Central District have repeatedly broken. The industry believes that due to the lower rents in Kowloon, it is expected to attract Hong Kong Island residents to relocate.
According to the monthly rental trend of Knight Frank, the rents of various commercial districts in June did not change much in a month. The rent increase in most commercial districts was less than 1%. The overall commercial rent in Central was about 159.8 yuan, up by about 0.8% per month. The increase was 6.7%. In the surrounding business districts such as the Ring Road, Admiralty and Causeway Bay, the annual rental increase was as high as 8.6% to 14.5%. For Kowloon, the rents in Tsim Sha Tsui and Kowloon East increased.
KPMG negotiates to rent Wong Chuk Hang Commercial Building
In terms of rental activities, the largest hand rental business in the market is expected to appear in Wong Chuk Hang District. South Island Place, the Wong Chuk Hang Commercial Building, which was developed by Swire Properties (01972) in cooperation with China Motors (00026), was completed this year and has been rented in recent months. According to the news, KPMG, one of the four major accounting firms, recently rented 7 to 8 floors, covering more than 150,000 square feet, close to 4 to 5 percent of the project. It is reported that KPMG has rented a medium office in the early years. In 2011, the pre-leasing of the Hysan Square in Causeway Bay was about 80,000 square feet. The rent in the area has also increased. If the new commercial building in Wong Chuk Hang is leased, the rent will be about $30, which will save more than the Causeway Bay area. Half rent.
As regards the Kowloon area, the tenancy is relatively active and the rents are also satisfactory. The Victoria Dockside office building in Tsim Sha Tsui is part of the K11 Atelier office building with a floor area of 1 to 8 and an area of about 7,183 square feet. It is rented out for about $790,000 per month. The lease is about $110, creating a new high in Kowloon. Victoria Dockside (formerly New World Center) has a total floor area of 3 million square feet and a rentable office area of 435,156 square feet.
One of the most active rentals in East Kowloon, One Pacific Centre, 414 Kwun Tong Road, has a large-scale rental business covering all floors of 20, 21 and 22 floors. Each floor has an area of about 8,660 square feet, for a total of about 25,980 square feet. About 30 yuan is rented out. The new tenant is a shared working space and is a Hong Kong-owned operator. Another section, Room 02 to 07, One Kowloon, Kowloon, covers more than half of the floor and covers an area of about 13,613 square feet. It is leased at about $36 per square foot. The new tenant is the Land Registry of the Government. In recent years, many government departments have moved to the area to tie in with the commencement of Kowloon East.
Knight Frank pointed out that in June, the vacancy rate of commercial buildings in Central was low at 0.9%, which continued to be low and caused rents to rise. As the floor is almost fully rented out, the tenant is a reserved unit. The lease has not expired next year and the pre-leasing has been processed this year. According to the bank, rents in Sheung Wan and Admiralty District have risen significantly, as many multinational organizations have moved from Central. In contrast, Chinese institutions still prefer Central. As regards the Kowloon area, the data showed that the rent increase in Tsim Sha Tsui in the first half of the year was about 6%. Knight Frank is expected to be affected by the summer vacation. The rental activities will be quiet until September. Many organizations are considering moving from Hong Kong Island to Kowloon because of cost savings and the search for a building.