Hong Kong Island office rents projected to increase 5% in 2016

Low vacancy rates were cited.

It has been noted that despite the economic uncertainties in Hong Kong and the Mainland, office rents on Hong Kong Island will go up in 2016.

According to a research note from Knight Frank, David Ji, Director, Head of Research & Consultancy, Greater China, expects office rents on Hong Kong Island to increase 5% this year, given extremely low vacancy rates.

Office rents in decentralised areas, however, could drop 5% in 2016, given abundant supply in the pipeline.

Here's more from Knight Frank:

The lack of available space continued to limit Grade-A office leasing activities in core business areas last month. To avoid the high office rents in Central, some firms with a long presence in the area relocated to non-core areas.

The Kowloon Grade-A office leasing market saw a number of relocation deals involving insurance and sourcing companies in March. Office rents in Kowloon East, however, have been under pressure from the increasing supply coming on line.