Hong Kong's office industry to witness jump in decentralisation

90% of new buildings will be in decentralised areas.

It has been noted that Hong Kong will see an increase in decentralized activity, with 90% of new buildings in decentralized locations, mainly in Kowloon East.

According to a research note from CBRE, most markets in APAC will see a vacancy increase above the long-term average, offering occupiers plenty of options to lease prime office space.

However in tightly held markets such as Beijing, Hong Kong, Auckland, Bangkok, Tokyo, Manila and Singapore, landlords will retain the upper hand but some will need to be more flexible towards lease structuring.

Here's more from CBRE:

Rhodri James, Executive Director, Office Services, CBRE Hong Kong: “Hong Kong will see improving business momentum favorable to office demand mainly supported by demand from Chinese corporates.

Despite an expected rebound in new completions of 3 million sq. ft. during the course of the year, only 15% will be available on Hong Kong Island, and not much will be used for portfolio leasing.

Secondary space will continue to be scarce and total leasable stock will remain limited. Demand for Grade A prime office will outperform other sub-sectors, resulting in an uptick in rents in 2015. An average rental growth of 5% is expected, mainly led by Central.”