Grade-A office sector to drive 2016 Hong Kong property

Extremely low vacancy rates to help.

It has been noted that in November this year, the highlights of Hong Kong’s office market were two mega en-bloc sales involving mainland firms.

According to a research note from Knight Frank, with ample liquidity, Mainland firms have been actively seeking opportunities to acquire whole-block office building for both owner-occupation and long-term investment purposes.

With their further expansion, Knight Frank expects this trend to continue next year. Further, given extremely low vacancy rates, David Ji, Director, Head of Research & Consultancy, Greater China at Knight Frank expects Grade-A office rents in core business districts to increase 5% in the coming year, while those in non-core areas could drop 5%.