The office market is under strain from weakening capital market activity and less leasing demand from mainland firms, S&P says

Overall grade A office rents dropped further in January, property agency said

Hong Kong’s grade A office rents will decline by another 5 per cent this year, as demand from mainland China-based companies has yet to return to pre-pandemic levels and vacancy rates remain high due to new completions, analysts said.

The decline will add to a 6.5 per cent drop recorded last year, S&P Global Ratings said.

“Hong Kong’s office markets are under strain from weakening capital market activities in the city and less leasing demand from mainland China companies,” the ratings agency said in a report on Monday.

The S&P forecast comes after the overall vacancy rate for grade A offices in Hong Kong rose to 12.9 per cent as of January end – it stood at 12.8 per cent in December 2023 – driven by new completions, according to a property agency. The vacancy rate in Central rose to 10.4 per cent in January from 9.9 per cent a month earlier.

“Overall net effective rents of grade A offices dropped further by 0.6 per cent month on month in January,” an agent said in a report on Tuesday. “Rents in Central and Hong Kong East dropped further by 1.2 per cent and 0.9 per cent, respectively.”

Chinese firms accounted for just 10 per cent of new leasing activity in 2023, down from 15 per cent to 20 per cent in 2019, according to another agency. Five new office buildings are scheduled for completion this year, and overall vacancy is forecast to rise above 17 per cent by the end of 2024.

“We expect the vacancy rate to remain relatively high at about 10 per cent for offices in the prime business district, known as Central,” S&P said. “And it would be even up to the high teens for the outskirts of Central or other business districts.”

Hopes are pinned on capital market activity, the ratings agency said. More leasing enquiries are likely this year as capital market activity revives, it added.

Hong Kong’s initial public offering (IPO) market will gradually stabilise this year despite geopolitical tensions and economic uncertainties globally, aided by listing reforms and potential interest rate cuts in the second quarter, PwC said. It forecast that 80 companies will list in Hong Kong this year, with fundraising set to exceed HK$100 billion (US$12.78 billion). Last year, fundraising in the city fell by 56 per cent, with 73 companies raising HK$46.3 billion.

To counter the impact of increased new office supply, office owners are quickly adapting to new green requirements to attract new tenants, S&P said.

“The increase in new office completions has been a driving force behind tenants seeking high-quality office spaces to enhance their working environment,” another agent said. “This trend has resulted in new buildings with reputable green certifications outperforming others in the market.

“We believe the upgrading demand will continue to drive the market this year.”

A major transaction recorded during the month was Franklin Templeton leasing 23,600 sq ft at Two International Finance Centre in Central, according to the first agency. The firm is relocating from Chater House in the same district.

(South China Morning Post)

For more information of Office for Lease at International Finance Centre please visit: Office for Lease at International Finance Centre

For more information of Office for Lease at Chater House please visit: Office for Lease at Chater House

For more information of Grade A Office for Lease in Central please visit: Grade A Office for Lease in Central

灣仔新銀集團中心全層1.05億易手 逾6年貶值33%面積7388呎

用家趁市況低迷，紛出手購工商物業自用，最新為灣仔新銀集團中心全層單位，以近1.05億易手，平均呎價1.42萬，物業於6年間貶值33%，新買家為一間管理公司，將由尖沙咀遷往灣仔。

上述為新銀集團中心13樓全層，建築面積7388方呎 以1.04909億易手，平均呎價1.42萬，上述單位交吉，新買家為一間管理公司，目前使用尖沙咀永安廣場單位，把握市況下跌，購入物業自用，於6年前市況暢旺時，該廈平均呎價逾2萬。

平均呎價1.42萬

原業主邱姓投資者，於2017年11月以1.57億購入物業，平均呎價約2.13萬，持貨逾6年，帳面虧損5209萬，幅度為33%。新銀集團中心為灣仔區內指標乙廈，聚集自用用家，該廈30樓全層，資深投資者紀寶於2017年2月以1.868億易手，呎價高達2.52萬。

有外資代理行發表香港地產市場報告中指，由於新寫字樓供應落成，本港1月底整體甲廈空置率升至12.9%，2024年1月錄16.08萬方呎淨吸納量，主因中環 The Henderson 早前預租樓面於1月項目竣工後得以落實。然而，新寫字樓供應增加，影響整體市場空置率，特別中環1月底空置率升至10.4%，尖沙咀和九龍東空置率均跌0.4個百分點。

整體甲廈空置率12.9%

該行代理表示，整體租賃市場主要由升級需求推動，市場上擁有綠色認證新寫字樓比同類物業更具競爭力。月內市場錄主要成交個案包括富蘭克林鄧普頓基金，將由中環遮打大廈搬遷至同區國際金融中心二期，承租約2.36萬方呎樓面。

該行另一代理表示，1月整體甲廈市場租金按月跌0.6%，主要分區市場中，中環和港島東租金分別跌1.2%和0.9%，尖沙咀保持平穩。

(星島日報)

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One Causeway Bay明年落成 提供55.5萬呎商業空間

銅鑼灣怡東酒店舊址，新近正式命名 One Causeway Bay，預計於2025年第二季度落成。

銅鑼灣甲級寫字樓項目 One Causeway Bay，位於告士打道281號，重建後將有24層寫字樓樓層，提供約50萬方呎辦公空間，每層可出租面積約2萬方呎；亦有4層零售樓層加天台及平台，提供約5.5萬方呎購物、娛樂及餐飲空間，項目委任一間外資代理行為首席行銷代理。

項目樓高24層

文華東方酒店集團行政總裁 Laurent Kleitman 表示，One Causeway Bay 將改造世界級寫字樓，是香港現時最值得矚目的重建工程之一，預計2025年第二季度竣工，成為銅鑼灣新地標。

One Causeway Bay 距離銅鑼灣港鐵站僅2分鐘步程，驅車8至10分鐘可達中環。

(星島日報)