testThe Central occupier market contracted by 56,100 sq ft in July amid subdued leasing demand pushing the vacancy rate up to a three-year high of 2.6%. Among the few transactions completed during the month, an insurance firm reported leased 18,300 sq ft The Center.
The overall market recorded positive net take-up of 75,900 sq ft in July, driven by leasing activity outside of Central, particularly Hong Kong East. Notably, Standard Chartered Bank leased 18,700 sq ft at Oxford House to accommodate the expansion of their virtual banking arm.
The completion of K11 ATELIER King's Road in June led to an uptick in the Vacancy rate in Hong Kong East. Recent commitments in the building, however, led to the vacancy rate dropping back down to 2.7%.
Overall, market rents slipped by 0.1% m-o-m in July. Rents in Central and Wanchai / Causeway Bay continued to retreat, down by 0.2% m-o-m and 0.1%, respectively. Kowloon East was the only major office submarket to record growth with rents up 0.2% m-o-m.
Few office properties changed hands during the month as investors digested the heightened uncertainly in the global economic outlook as well as the escalating civil unrest. Still, pricing remained relatively unchanged as vendors continued to hold firm on asking prices. Notably, a small unit in the mid-zone of Admiralty Centre Tower 1 reported sold for HKD 200 million (HKD 30,465 per sq ft) with the vendor booking a gain of 272% over a 10-year period.