• Hong Kong office market continues to decentralise

    21 May 2020

    (20 May 2020, Hong Kong) While Hong Kong’s COVID-19 outbreak was showing signs of stabilisation towards the end of April, office leasing demand remained relatively weak. New lettings contracted by 14% m-o-m, according to JLL’s latest Property Market Monitor, released today.

    Rents across all major office submarkets dropped in April, seeing a decline of 3% m-o-m, as the lack of demand remained persistent. Central was hardest hit as tenants either downsize or relocate to lower cost options in decentralized locations.  In one example, a PRC private equity firm that reportedly held a 7,800 sq. ft lease at Two International Finance Centre, moved to another Grade A office space in Central. Vacancy rate lifted to 4.6% in April, the highest level since January 2014.

    Alex Barnes, Head of Markets at JLL in Hong Kong, said:“Companies with near term lease expiries are considering lower cost options, with a number of decentralised relocations.  Global economic concerns will continue to encourage decentralisation through the year.  Businesses carrying surplus space are trying to realise potential cost savings by downsizing or disposing of extra office.” Nelson Wong, Head of Research at JLL in Greater China, said: “Rental contraction in Central remained the sharpest among the major office submarkets, dropped by 4.5% m-o-m as more available office space returned to the occupier market. Grade A office rents will likely face further downward pressure in the remainder of 2020.”

    More Real Estate
    Asia Pacific real estate investment declines by 34% in Q1 2020
    (11 May 2020, Hong Kong) Investment in Asia Pacific commercial real estate trended down during the first quarter of 2020, declining 34% year-on-year as the spread of COVID-19 impacted the flow of capital into numerous industries and asset classes. According to new data and research from JLL for Q1 2020, real estate transaction volumes experienced a steep contraction in Asia Pacific, ending [...]
    Rents in the CBD hit hardest amid cost-saving measures
    Knight Frank launches the latest Hong Kong Monthly Report. The COVID-19 pandemic continues to depress office rents during the month. In the residential market, the overall residential price has dropped by 6.6% from the peak in May last year, but luxury residential prices are unlikely to fall off the cliff, given the combination of strong holding power of owners and scarcity. In the short [...]
    Investors Remain Healthy Investment Appetite Towards Real Estate
    (30 March 2020, Hong Kong) As Q1 2020 is mired in disruptions to travel, supply chains and business activities due to the unpredictable nature of COVID-19, investors across Asia Pacific have moved into wait-and-see mode. However, findings from CBRE’s latest Asia Pacific Investor Intentions Survey indicate that most investors retain a healthy appetite for commercial real estate, with [...]
    Retailers are in survival mode as headwinds multiply
    (24 March 2020, Hong Kong) Knight Frank launches the latest Hong Kong Monthly Report. Many office tenants, both local and multinational, have tended to delay or put on hold their real estate decisions, resulting in low levels of leasing activity. Similar to the situation on Hong Kong Island, activity in the office leasing market on Kowloon side remained low. In the residential market, as [...]
    Vacancy rate in Central’s Grade A office market reaches over five-year high
    (24 February 2020, Hong Kong) Central’s Grade A office rents dropped the sharpest among Hong Kong’s core business districts as its vacancy rate reached 4% in January, the first time in more than five years, according to JLL’s latest Market Monitor report released today. Vacancies in major business districts continued to be on the rise, causing rents in the overall market to edge down by [...]
    JLL office achieves LEED Platinum with Hong Kong’s highest score
    (10 December 2019, Hong Kong) JLL’s Hong Kong office at One Taikoo Place has been awarded the Leadership in Energy and Environmental Design (LEED) Platinum certification with the highest score for the city and the second-highest score globally under the Interior Design and Construction category. LEED, developed by the US Green Building Council (USGBC), is the most widely used green building [...]
    New Tuen Ma Line will cushion home prices fall in Tai Wai & Diamond Hill
    (3 February 2020, Hong Kong) Property markets in Tai Wai and Diamond Hill are expected to be benefited from the opening of the first phase of Tuen Ma Line, according to JLL’s latest Residential Market Monitor released today. Housing prices in these districts are likely to hold up better than the broader market. Phase 1 of Tuen Ma Line will commence service on 14 February 2020. With the new [...]
    London based designer brings Contemporary Sophistication to Hong Kong residence
    Nestled high above the city’s skyscrapers sits 8 Kennedy Terrace, a new development in Mid-Levels with a spectacular view of Hong Kong’s towering skyline. Spacious rooms with exceptionally high ceilings gave interior designer, Rients Bruinsma the capacity to flourish in his creativity. This project is a collaborative effort between Rients and the Client as the spaces were designed around [...]
    More Challenges for HK property market in 2020
    (12 December 2019, Hong Kong) The longest bull market in Hong Kong’s property market history has come to an end in the second half of this year due to the local social movement and economic uncertainties. Prices and rents of office, high street shops and residential properties are expected to drop 10% to 20% in 2020, according to JLL’s Year-end Property Market Review and Forecasts [...]