For overall Grade A office rents in Hong Kong’s prime Central business district, they averaged at US$186 per sq ft.

For overall Grade A office rents in Hong Kong’s prime Central business district, they averaged at US$186 per sq ft.

Prime office rents in average costed $255 per sq. ft. in the first half year of 2015.

Knight Frank released its Global Cities 2016 Report which studied the cost of renting office space in high-rise across worldwide metropolises between Q4 2014 and Q2 2015, on 15 October, it reported the rents in Hong Kong’s skyscrapers offices ranked the top. 

Hong Kong’s skyscraper office rent per square foot reached US$255.5 per square foot yearly, over US$100 more expensive than New York which ranked in 2nd place with a rent of US$153 per sq. ft.

For overall prime office rents in Hong Kong CBD averaged at US$186 per sq ft, while International Financial Center (IFC) in Central which offers the most expensive office rental about US$264 per square feet yearly.

Hong Kong also ranked the 1st in 2014, with rents of US$250.5 per sq ft yearly, while Knight Frank expected rent of HK grade A offices to continue rise 12% from 2015 to end-2018. 

Hong Kong office rents remain the world’s most expensive and the trend is expected to continue in the next few years even after mainland firms show signs of slowing their pace of expansion, Knight Frank said on 15 October.

Prime rent in high-rise office buildings grew 1.9 percent to US$255.50 (HK$1,992.90) per square foot in the first half from a year back, a report by the real estate group said. New York and Tokyo are ranked second and third at US$153 and US$125 psf, respectively.

The SAR clinched the top rank as the vacancy rate in Central is at a nearly record low at a mere 1.4 percent. Overall vacancy rate in the SAR also dipped to 1.7 percent last month, significantly lower compared to over 5 percent in other major cities such as London and Manhattan, said Thomas Lam Ho-man, head of valuation and consultancy.

Commercial agency director Nelson Lam Wu-cheung noted mainland companies were less active in the past few weeks in looking for office spaces amid China’s economic slowdown and sluggish stock market.

Still, he expects Chinese firms to take up nearly half of new leases in Central this year, up from 20 percent last year.

Source: The Standard Finance 

More Related News:

  • HK developers won a deal of casino project in AustraliaJuly 21, 2015 HK developers won a deal of casino project in Australia Jointly develop with an Australian casino operator, 2 Hong Kong companies were awarded a gaming-cum-resort project in CBD of Brisbane, Queensland. Hong Kong companies Far East […]
  • Hong Kong developer gain much from rental incomeMarch 24, 2015 Hong Kong developer gain much from rental income Henderson Land Development's profit from property sales was weaker than rental in 2014 Henderson Land Development (0012.HK) underlying profit grew 4 percent last year as higher rental […]
  • Price of HK housing is leading the worldJune 16, 2015 Price of HK housing is leading the world Home prices up by 19% YOY in 1Q15, Hong Kong ranked the top of Global House Price Index Knight Frank released the latest Global House Price Index for Q1 2015 showing the slowest growth […]
  • Hong Kong ranks after Singapore in financial centre indexApril 9, 2016 Hong Kong ranks after Singapore in financial centre index Competitiveness of Hong Kong slides The latest index released by Z/Yen Group shows Singapore has overtaken the SAR as the No 3 global financial center. As the dominant financial centre […]