Office Portfolio Of HK’s Largest Developer 93% Occupied

HONG KONG – Sun Hung Kai Properties, the biggest developer in the Chinese territory, revealed that its office portfolio saw an overall average occupancy of around 93 percent as of the end of December 2022, according to filings with the Stock Exchange of Hong Kong (HKEX) on Thursday (23 February, SGT).

“Following the normalization of cross-border travel, there has been a mild increase in leasing enquiries and activities,” said the group, adding that it expects Hong Kong office leasing demand to pick up thanks to rising economic activities and business transactions following the border reopening.

Notably, the real estate developer owns 10 million sq ft of office space.

However, Sun Hung Kai Properties announced that its gross rental income from its Hong Kong commercial properties, including office space and contributions from joint ventures (JV), dipped 2 percent year-on-year to HK$8.77 billion in 2022.

Meanwhile, the property developer disclosed that last year it completed Plaza 228, an upscale office development in Wan Chai with an attributable gross floor area (GFA) of around 122,000 sq ft.

“The group’s completion in the second half of this financial year is expected to increase meaningfully to about 2.9 million sq ft, of which about 2.0 million square feet are residential premises for sale. The remainder are non-residential properties, of which about 635,000 sq ft will be kept for rental purpose,” it shared.

Sun Hung Kai Properties’ upcoming projects with office components include an office and retail development at 98 How Ming Street in Kowloon East. Another is Millennity, which comprise two
Grade A office buildings spanning 650,000 sq ft, where leasing activities are “progressing well”, and the group has recently commenced handing over the office spaces there to occupants.

Another project in the pipeline with an office component is the developer’s mega integrated development above the High Speed Rail Terminus in West Kowloon that will feature about 2.6 million sq ft of Grade A office space.