Strong Demand For Office Space In HK’s Central

HONG KONG – Hongkong Land Holdings, the largest landlord in the city’s pricey office market, revealed rental take up for its office buildings in Central is robust, reported Bloomberg on Monday morning (6 September, SGT).

Leasing demand for the developer’s interlinked office buildings in Hong Kong’s commercial centre hasn’t been impacted by the stringent quarantine regulations or the imposition of the controversial national security law, said Hongkong Land’s Executive Director Raymond Chow told Bloomberg Television.

“In reality we don’t see the leasing demand subsiding at all. What we see is a lot of corporates now are elevating and going back to quality.”

Hongkong Land’s bullishness contrasts with the general performance of Central’s office leasing market, where the vacancy level increased from 5.7 percent at the end of July 2020 to 9.6 percent during the same period this year, based on statistics from Jones Lang LaSalle (JLL). Data from the property consultancy also showed that office rents in the area declined 3.3 percent during the first seven months of the year.

Notably, global banks have been slashing their property footprint in Hong Kong over the past year because of the prevalence of hybrid work models and due to cost-cutting measures. Industry groups, particularly those from the financial sector, also warned that the Chinese territory’s stringent quarantine regulations are negatively affecting Hong Kong’s status as a major global commercial hub.

Meanwhile, Hongkong Land’s office spaces are among the top-notch in the city. In fact, its occupants include big names such as KPMG, JPMorgan Chase, and the local bourse (HKEX).

To retain its competitiveness amidst a sluggish office market, the 100-year old firm has rolled out new services. For instance, it launched a coworking space, which is an uncommon move for a developer.

Chow also shared that Hongkong Land plans to offer health and wellness amenities to its occupants in the future to match their changing lifestyle.

“In the office space now, there is a convergence of how people want to live and how people want to work. It’s almost a situation where you need to have these facilities in the ecosystem,” he added.