Hutchison House Redevelopment To Add Huge Amount Of Prime Office Space In Central
HONG KONG – The redevelopment of Hutchison House, which is expected to be finished next year, will add 550,000 sq ft of prime office space in Central, reported the South China Morning Post (SCMP) on Wednesday evening (10 August, SGT).
This was learnt after CK Asset Holdings revealed for the very first-time the new design of the commercial property, which is poised to be rebranded as Cheung Kong Center II (CKC II).
The new office building will stand at 43 storeys, surpassing the 23-level Hutchison House. Aside from that, all office floors at the new commercial property will have an unobstructed 270-degree view of Victoria Harbour.
“Adopting and modernising the iconic glass curtain wall and linear design of the Cheung Kong Center, CKC II boasts practical office space with maximum layout flexibility, allowing tenants to utilise every inch of space,” said CK Asset.
Notably, Cheung Kong Center is the existing office tower that houses Cheung Kong Group, the parent company of CK Asset Holdings. CK Asset Holdings is a real estate developer established by tycoon Li Ka-shing. It is also Hong Kong’s second-biggest developer by value.
The demand for office space at Cheung Kong Center II will likely act as a barometer for the city’s office property market, which continues to languish amidst weak demand and rising stock, coupled with an economy that has been severely impacted by the Chinese territory’s harsh COVID restrictions.
Located at 10 Harcourt Road, Hutchison House is within proximity to other well-known office buildings in Central, including CCB Tower, HSBC’s headquarters, Bank of China Tower, and the Standard Chartered Bank Building. It is also close to the office of global companies across sectors like law, technology, and accounting, as well as trade and commerce.
Knight Frank’s Director and Research Head for Greater China Martin Wong thinks that Cheung Kong Center II will be steadily leased by tenants as more firms return to Central.
“Office tenants are taking the (opportunity presented by the) current low rents to occupy in Central, especially the premium buildings,” he explained.
In April 2022, New York-headquartered law firm White & Case opened a new office across three levels in York House. A month after that, global law firm Dorsey & Whitney transferred to a 3,500 sq ft office in Alexandra House.
However, monthly rents of grade A office space in Central have plummeted by 28.3 percent from their peak in 2019 to HK$57.30 psf, based on figures compiled by real estate consultancy Jones Lang LaSalle (JLL).
Hong Kong office rents are likely to remain weak as an estimated 4.6 million sq ft of new prime office space are expected to enter the market this year. This is the highest since 6.8 million sq ft were added in 1998, stated a report by Morgan Stanley.