HK's CBD office occupancy rate hikes despite Occupy Central Protest
June 22, 2015
Net office absorption rate of Hong Kong's Central Business District(CBD) gained highest rising level in one quarter time during the second quarter of 2015, thanks to the financial services companies efforts to increase presence in thecentral district - latest research by global property agency DTZ reveals.
The net office absorption rate at Central/Admiralty stood at 364,859 sqft in the second quarter of 2015- defying the aftermath effects of Hong Kong’s occupy Central Movement, making it the highest level in one quarter time since the second quarter of 2008- before the global financial crisis.
Despite the fact net absorption in most other districts fell back from the first quarter this year. The Island east district recorded a negative net absorption rate of -57,980 sqft during the quarter, which Alva To, Hong Kong head of Consulting, Greater China DTZ attributed it to the tenants’ preference to move to Central district for corporate operational needs.
In spite of the uneven performance of the districts, office rents rose in all districts in HKSAR, benefiting from mainland Chinese companies’ efforts of increasing presence in the local office market.Despite the office property market growth, the retail property market in Hong Kong suffered retreat, due to the slowdown of tourists’ arrivals and decrease sales of luxury goods. Rents from prime shop fronts could fall by 40 percent base on lease renewals situation projected by the property agency.
