HK Office Market Stabilising, Says Henderson Land
HONG KONG – Henderson Land, one of the top commercial property landlords in the Chinese territory said that Hong Kong’s overall office rental market has recently shown signs of stabilisation with a rising volume of absorption, despite a large supply pipeline, especially in Kowloon East, according to its latest bourse filings.
In the announcement of its latest financial results, the real estate company said its premium office buildings in Hong Kong Island like the International Finance Centre (ifc) in Central, as well as the AIA Tower in North Point and FWD Financial Centre in Sheung Wan consistently registered high occupancy during the 6-month period that ended on 30 June 2022.
“Newly-built office developments, namely Harbour East in North Point and 208 JOHNSTON in Wanchai recorded improved occupancy as they attracted diverse tenants looking for quality specifications and a convenient transport network,” noted Henderson Land.
The company’s industrial/office buildings in Kowloon East such as the AIA Financial Centre, Manulife Financial Centre, 52 Hung To Road, and 78 Hung To Road “maintained satisfactory occupancy” due to Henderson Land’s “effective tenant retention strategy,” despite stiff competition for office tenants among Hong Kong office landlords.
Meanwhile, the construction works for the company’s flagship commercial development in Central, The Henderson, have been progressing well. Upon its expected completion by 2023, it will offer 465,000 sq ft of super Grade-A office space.
“Leasing response for this environmentally-friendly building has been encouraging.” Global auction house Christie’s has agreed to be The Henderson’s first anchor tenant, occupying around
50,000 sq ft of space there.
Furthermore, multinational investment company Carlyle committed to occupy around 20,000 sq ft of office space there that it intends to use as its Asia Pacific headquarters, added Henderson Land.