Hysan’s HK Office Occupancy At 91% In H1 2022

HONG KONG – Hysan Development, the biggest commercial property owner in Causeway Bay, announced that the occupancy rate of its office portfolio in the Chinese territory remained “robust” at 91 percent, according to the company’s latest financial results published on Monday (22 August).

The real estate company said many employees have shifted to hybrid work and adopted flexible hours due to the COVID-19 pandemic.

“Yet, many also recognise the advantages of having an office in the prime Lee Gardens area. These include the convenience of its location, the quality of the buildings, its reputation for attentive service and the synergy between the area’s offices and retail offerings. All of these factors contributed to two of Hong Kong’s leading banks deciding to open their premier wealth management centres in Lee Gardens in recent months.”

However, Hysan Development’s gross revenue for the first half of the year fell 3.3 percent to about HK$1.78 billion compared to the same period in 2021. At the same time, its recurring underlying profit dipped by 0.7 percent to around HK$1.17 billion.

The fall in gross revenue and underlying profit is mainly due to Hong Kong’s harsh COVID-related restrictions.

“The 5th wave of COVI-19 during the first months of 2022 in Hong Kong interrupted the economic recovery we saw during 2021. The restrictive measures imposed during the first quarter of 2022 not only reduced economic activity but also negatively affected consumer and business sentiment,” said Hysan’s Chairwoman Lee Irene Yun-lien.

Nonetheless, the group started to witness encouraging signs of recovery due to the waning of the virus outbreak and the gradual easing of the government’s strict quarantine measures.

“Like most businesses in Hong Kong, tenants in our core Causeway Bay portfolio were affected by the disruptions of the COVID-19 fifth wave,” though the situation has recently markedly improved, she added.