Businesses relocate outside Hong Kong
Decentralization has gained stronger momentum during the second quarter 2017 underpinned by large occupiers consolidating operations from multiple locations into new developments in Wong Chuk Hang and Causeway Bay for the Hong Kong office sector, according to Colliers International.
Relocation and consolidation have driven down vacancy rates in decentralized areas while Chinese companies have further expanded in Central Hong Kong. Given the stronger competition across Hong Kong Island, co-working operators have taken advantage of low rents and large floor pkans in Kowloon East. Colliers sees Kowloon East in particular as an attractive location for occupiers with ample available space.
Overall net absorption improved during the second quarter 2017 to 243,362 square feet compared to 10,582 square feet during the first quarter. With performance concentrated in nontraditional districts, the total net absorption of Hong Kong Island, Kowloon East and West Kowloon only accounted for 77,605 square feet.
The overall vacancy rate fell 0.1 percent to 4 percent by the quarter’s end. Central/Admiralty maintained its popularity with the vacancy rate staying low at 1.7 percent.
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