Kowloon East is the only submarket with a positive net take-up in Q3
Landlords have become more flexible by providing attractive lease terms to concentrate on retention of existing occupiers. This approach, due to the rise in vacant stock has created an opportunity for private banks, wealth management and insurance firm occupiers to seek upgrading and expansion opportunities in the CBD area.
- Overall and CBD office rents are forecasted to fall by 17% YOY and 20% YOY, respectively in 2020, before an expectation to stabilise from 2021 onwards.
- Kowloon East is the only sub-market to record a positive net take-up in Q3 of 114,900 sq. ft. as overall Grade A office space sees five consecutive quarters of negative net take-up.
- Occupiers should to seek upgrade opportunities given the recent rental decline.