Hong Kong Property Market
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Hong K ong Property Mark e t Mo n i t or Augu s t 2 0 14 Residential • Improved buyer sentiment led to a noticeable pick-up in market activity. July data, which largely reflects sales activity in June, showed monthly home sales rising to 7,792 transactions; up 30.7% m-o-m. • Mass residential capital values edged up slightly by 1.0% m-o-m in July. • Developers were eager to launch new mass market projects such as Metro6 in Hunghom and Mont Vert in Tai Po. All 95 units at Metro6 and 1,064 out of 1,071 units at Mont Vert are small to mid-sized units. • In the luxury sales market, a batch of new units at Grand Austin were sold for HKD 463.0 million at an average price of HKD 46,342 per sq ft, saleable. • According to market sources, the house at 10 Bowen Road in Mid-Levels was sold via equity transfer for HKD 400 million (HKD 80,225 per sq ft, gross). Grade A Office Consolidation and expansion requirements from the finance sector helped lift net take-up in Central to a market leading 61,000 sq ft in July. Although occupancy levels improved in most buildings, tenant downsizing and decentralisation did result in a number of buildings experiencing mild net withdrawals. Net take-up in the overall market reached an in-year monthly high of 164,100 sq ft in July. The redevelopment of Swire Properties’ techno- centres in Hong Kong East continues to serve as a catalyst for demand in the submarket. Fuji Xerox, for example, will relocate into two floors in Cityplaza Four. Their existing office space in Cityplaza Three will be used to accommodate the relocation of the government’s offices from Cornwall House. The growth of the occupier market saw rents edge higher across most submarkets in July; especially in the top-end of the Central office market where vacancy has tightened to a three-year low. Citigroup’s en-bloc purchase of the East Tower at One Bay East in the previous month has reignited interest in the Kowloon East office investment market with two floors at One Harbour Square in Kwun Tong selling for HKD 273.2 million (HKD 14,400 per sq ft, gross) and HKD 271.0 million (HKD 15,800 per sq ft, gross) to end-users. Fook Lee Holdings continued to offload core assets from its portfolio, selling Fook Lee Commercial Centre in Wanchai en-bloc to Asia Standard International Group for HKD 1.11 billion (HKD 13,800 per sq ft, gross). The transaction follows the sale of a residential building by the group in June. Tel. No.: +852 2116 8599 Fax No.: +852 2846 5100 © Copyright 2014 Jones Lang LaSalle. 6th Floor Three Pacific Place 1 Queen's h tt p : / / w ww.j l l p r o p er t y. c o m. h k/
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JLL shares their insights on the rental property market of Hong Kong, office rental in Hong Kong, residential, retail and industrial.
Transcript of Hong Kong Property Market
Hong Kong Property Market Monitor August 2014
Residential• Improved buyer sentiment led to a noticeable pick-up in market activity. July data, which largely reflects sales activity in June, showed monthly home sales rising to 7,792 transactions; up 30.7% m-o-m.
• Mass residential capital values edged up slightly by 1.0% m-o-m in July.• Developers were eager to launch new mass market projects such as Metro6 in Hunghom and Mont Vert in Tai Po. All 95 units at Metro6 and 1,064 out of 1,071 units at Mont Vert are small to mid-sized units.
• In the luxury sales market, a batch of new units at Grand Austin were sold for HKD 463.0 million at an average price of HKD 46,342 per sq ft, saleable.
• According to market sources, the house at 10 Bowen Road in Mid-Levels was sold via equity transfer for HKD 400 million (HKD80,225 per sq ft, gross).
Grade A Office
Consolidation and expansion requirements from the finance sector helped lift net take-up in Central to a market leading 61,000 sq ft in July. Although occupancy levels improved in most buildings, tenant downsizing and decentralisation did result in a number of buildings experiencing mild net withdrawals. Net take-up in the overall market reached an in-year monthly high of 164,100 sq ft in July.
The redevelopment of Swire Properties’ techno-centres in Hong Kong East continues to serve as a catalyst for demand in the submarket. Fuji Xerox, for example, will relocate into two floors in Cityplaza Four. Their existing office space in Cityplaza Three will be used to accommodate the relocation of the government’s offices from Cornwall House.
The growth of the occupier market saw rents edge higher across most submarkets in July; especially in the top-end of the Central office market where vacancy has tightened to a three-year low.
Citigroup’s en-bloc purchase of the East Tower at One Bay East in the previous month has reignited interest in the Kowloon East office investment market with two floors at One Harbour Square in Kwun Tong selling for HKD 273.2 million (HKD 14,400 per sq ft, gross) and HKD 271.0 million (HKD 15,800 per sq ft, gross) to end-users.
Fook Lee Holdings continued to offload core assets from its portfolio, selling Fook Lee Commercial Centre in Wanchai en-bloc to Asia Standard International Group for HKD 1.11 billion (HKD 13,800 per sq ft, gross). The transaction follows the sale of a residential building by the group in June.
Tel. No.: +852 2116 8599Fax No.: +852 2846 5100
© Copyright 2014 Jones Lang LaSalle.6th Floor Three Pacific Place1 Queen's Road East Hong Konghttp://www.jllproperty.com.hk/
Hong Kong Property Market Monitor August 2014
Retail•Retail sales registered another month of decline in June, down by 6.9% y-o-y. Sales of jewellery and watches remained as
the weakest segment, down by 28.2% y-o-y.• Growth of tourist arrivals also slowed with tourists from Mainland China growing by just 7.8% y-o-y in June, the slowest growth recorded in a month in the past 3 years.
• Riding on the popularity of all-things-Korean, Nature Republic will further expand its footprint in Hong Kong by leasing a 1,640-sq ft shop on Granville Road in Tsimshatsui. The Korean cosmetics retailer reportedly will pay a monthly rent of about HKD 950,000.
• Pamfleet has purchased the basement and a portion of the G/F (net floor area of 7,256 sq ft) of Union Park Centre in Mongkok forHKD 142.3 million.
Industrial•According to data released in July, the total value of exports grew by 11.4% y-o-y in June while imports grew by 7.6% y-o-y. Air-freight cargo at HKIA was up 7.3% y-o-y whereas container throughput grew by 5.6% y-o-y.
•Leasing activity was largely dominated by renewals with very few new lettings recorded in July owing to the tight vacancy environment.
•Fook Lee Holdings has disposed of the whole of EAC Distribution Centre in Fanling for HKD 400.0 million (HKD 3,134 per sq ft, gross). Current tenant is DHL.
•A group of local investors has disposed of the whole of Knapwood Industrial Building in Kwun Tong for HKD 200 million (HKD 4,748per sq ft, gross).
For more information, please contact:
Denis MaHead of Research Hong Kong [email protected] +852 28465135
Jones Lang LaSalle+852 2846 5000
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Tel. No.: +852 2116 8599Fax No.: +852 2846 5100
© Copyright 2014 Jones Lang LaSalle.6th Floor Three Pacific Place1 Queen's Road East Hong Konghttp://www.jllproperty.com.hk/
