HONG KONG EDITION
MARCH 2016
Hong Kong Commercial Real Estate at Your Fingertips
PEAK
PEAK
PEAK
TROUGH
TROUGH
TROUGH
OVERALL
HONG KONG
KOWLOON
Central regains its rent-premium luster The best of the best
Market outlook
A comprehensive portfolio showcasing premier office leasing opportunities across Hong Kong
Central rents outperform other districts
A tenant’s market for Kowloon
HONG KONG’S
Central regains its rent-premium luster
38
Hong Kong Island Sole Agent
5
Hot Listings
10 16
Recent Leasing Transactions
Kowloon Joint Sole Marketing and Leasing Consultant
18
Sole Marketing Agent
Hot Listing
20 21 22
Joint Sole Marketing Agent and Hot Listings
24
Recent Leasing Transactions
37
Lead Marketing Agent
Goldin Financial Global centre
18
KEY TO PROPERTY ICONS Seaview
Mountain View
Garden View / Open View
Close to MTR Station
Raised Floor
Fitted-out
Parking
24-hour Air-conditioning
Close to Public Transport
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). Š2016. All rights reserved.
CENTRAL ADMIRALTY SHEUNG WAN WAN CHAI CAUSEWAY BAY ISLAND EAST WONG CHUK HANG
Hong Kong Island
SOUTHSIDE
38 WONG CHUK HANG ROAD | HONG KONG
Unveiling a new office icon A brand new Grade A development situated within minutes via the soon to be completed South Island Line to the Admiralty Railway Interchange.
For leasing enquiries, call us NOW SOLE AGENT Colliers International Agency Limited
Suite 5701, Central Plaza, 18 Harbour Road, Wanchai Hong Kong (Company Licence No. C-006069)
www.colliers.com
852 2822 0701 offices.hongkong@colliers.com
CENTRAL
HONG KONG ISL AND
Sole Agent
Prime Office Space with Seaview in Core Central > > > > > > > > >
Surrender space Approx. area: 9,435 sq ft net Full panoramic seaview Bareshell or fitted condition Direct lobby exposure and access 24-hour air-conditioning included Top zone Highly efficient floor plate Availability: 1 June 2016
David Wood (S-308367) 852 2822 0694 | 852 9862 1573
ADMIRALTY
david.wood@colliers.com
Sole Agent
United Centre 95 Queensway
> Sub-lease space > Approx. area: 4,571 sq ft gross > Facing the Central Government Complex with a harbour view > Fitted with 7 director rooms > Multinational bank as head lessee > Attractive and cost effective rental package > Availability: Immediate
Billy Ng (S-285378) 852 2822 0558 | 852 9145 8148 billy.ng@colliers.com
Page 6 | Colliers International | Moving Times
HONG KONG ISL AND
WAN CHAI
Sole Agents
MassMutual Tower 38 Gloucester Road > > > > > >
Surrender space Approx. area: 4,500 / 13,500 / 17,000 sq ft gross Panoramic seaview Fully fitted condition Attractive rental package Availability: Negotiable
Wendy Lau (E-141423) 852 2822 0550 | 852 9471 7722 wendy.lau@colliers.com
3 Lockhart Road > > > > > > >
Approx. area: 1,526 / 4,182 sq ft gross Landlord’s provisions: full ceiling systems Newly renovated premises with seaview Column-free design floor plate Close proximity to hotels Close to public transportation Availability: Immediate / July 2016
Typical floor plan (For identification purpose only)
Billy Ng (S-285378) 852 2822 0558 | 852 9145 8148 billy.ng@colliers.com
Sam Gourlay (S-480270)
852 2822 0618 | 852 9100 0307 sam.gourlay@colliers.com Colliers International | Moving Times | Page 7
WAN CHAI
HONG KONG ISL AND
Sole Agents
China Resources Building 26 Harbour Road > > > > > >
Approx. area: 10,322 sq ft lettable Partial seaview and open city view Fully fitted condition High efficiency rate Good amenities in vicinity Availability: Negotiable
Gary Fok (E-121418) 852 2822 0685 | 852 9489 1710
ADMIRALTY
gary.fok@colliers.com
Jonathan Der (S-453079) 852 2822 0555 | 852 9816 6613 jonathan.der@colliers.com
Sole Agent
United Centre 95 Queensway
> Approx. area: 6,223 sq ft gross > Located close to Admiralty MTR station > Modern decoration – open plan with large conference room and 10 manager rooms > Availability: May 2016 - earlier by negotiation
Piers Steward (S-499644) 852 2822 0656 | 852 9430 2147 piers.steward@colliers.com
Page 8 | Colliers International | Moving Times
HONG KONG ISL AND
FORTRESS HILL
Sole Agent
@Convoy
169 Electric Road > > > > > >
Surrender space Approx. area: 2,074 sq ft gross City view Fully fitted space with furniture 8 open plan workstations, 5 office rooms, 1 boardroom, reception and pantry Availability: Negotiable
Ryan Tong (S-322048) 852 2822 0613 | 852 9229 6000 ryan.tong@colliers.com
Sayaka Matsumoto (S-320909) 852 2822 0745 | 852 9801 7888 sayaka.matsumoto@colliers.com
WONG CHUK HANG
Sole Agent
One Island South 2 Heung Yip Road
> > > > >
Surrender space Approx. area: 20,500 sq ft gross Open view High quality fittings for creative industries MTR Southline Link (East) ready by 2016* (*source: MTR website)
> In-house car parking > Shuttle bus service available > Possession: Negotiable
Ryan Tong (S-322048) 852 2822 0613 | 852 9229 6000 ryan.tong@colliers.com
Gary Fok (E-121418) 852 2822 0685 | 852 9489 1710 gary.fok@colliers.com
Colliers International | Moving Times | Page 9
CENTRAL / ADMIRALTY
HONG KONG ISL AND
Hot Listings 1 Duddell Street
8 Wyndham Street
1 Duddell Street
8 Wyndham Street Approx. Area (sq ft) 1,061 - 3,670 (G)
Approx. Area (sq ft) 1,793 - 3,586 (G)
Estimated Effective Rent (HKD psf) $63 - $65
Estimated Effective Rent (HKD psf) $63 - $65
33 Des Voeux Road Central 33 Des Voeux Road Central
Bank of America Tower 12 Harcourt Road
Approx. Area (sq ft) 3,421 - 6,842 (G)
Approx. Area (sq ft) 2,415 - 18,000 (G)
Estimated Effective Rent (HKD psf) $68 - $75
Estimated Effective Rent (HKD psf) $60 - $75
Cheung Kong Center 2 Queen’s Road Central
China Building
29 Queen’s Road Central
Approx. Area (sq ft) 7,233 - 20,227 (L)
Approx. Area (sq ft) 2,050 - 5,279 (G)
Estimated Effective Rent (HKD psf) $135 - $160
Estimated Effective Rent (HKD psf) $68 - $75
Citibank Plaza - Citibank Tower 3 Garden Road
Citibank Plaza - ICBC Tower 3 Garden Road
Approx. Area (sq ft) 1,682 - 30,494 (L)
Approx. Area (sq ft) 954 - 7,530 (L)
Estimated Effective Rent (HKD psf) $105 - $115
Estimated Effective Rent (HKD psf) $105 - $115
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Hong Kong
852 2822 0668 offices.hongkong@colliers.com
Page 10 | Colliers International | Moving Times
Hot Listings Henley Building
Hutchison House
5 Queen’s Road Central
10 Harcourt Road Approx. Area (sq ft) 2,209 - 5,479 (L)
Approx. Area (sq ft) 542 - 20,293 (G)
Estimated Effective Rent (HKD psf) $60 - $85
Estimated Effective Rent (HKD psf) $70 - $80
CENTRAL / ADMIRALTY
HONG KONG ISL AND
New World Tower
Lippo Centre
16-18 Queen’s Road Central
89 Queensway
Approx. Area (sq ft) 1,499 - 7,482 (G)
Approx. Area (sq ft) 400 - 11,000 (G)
Estimated Effective Rent (HKD psf) $60 - $80
Estimated Effective Rent (HKD psf) $65 - $73
Printing House
The Centrium
6 Duddell Street
60 Wyndham Street Approx. Area (sq ft) 477 - 3,530 (G)
Approx. Area (sq ft) 1,065 - 5,908 (G)
Estimated Effective Rent (HKD psf) $60 - $65
Estimated Effective Rent (HKD psf) $50 - $55
Two International Finance Centre 8 Finance Street
United Centre 95 Queensway
Approx. Area (sq ft) 2,093 - 45,073 (L)
Approx. Area (sq ft) 2,693 - 15,388 (G)
Estimated Effective Rent (HKD psf)
Estimated Effective Rent (HKD psf)
$135 - $160
$45 - $55
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Hong Kong
852 2822 0668 offices.hongkong@colliers.com
Colliers International | Moving Times | Page 11
SHEUNG WAN
HONG KONG ISL AND
Hot Listings 69 Jervois Street
Golden Centre
69 Jervois Street
188 Des Voeux Road Central Approx. Area (sq ft) 2,174 - 3,976 (G)
Approx. Area (sq ft) 1,383 - 2,509 (G)
Estimated Effective Rent (HKD psf) $28 - $30
Estimated Effective Rent (HKD psf) $42 - $45
Grand Millennium Plaza, COSCO Tower 183 Queen’s Road Central
Shun Tak Centre
200 Connaught Road Central
Approx. Area (sq ft) 1,560 - 9,000 (G)
Approx. Area (sq ft) 1,130 - 8,573 (G)
Estimated Effective Rent (HKD psf) $50 - $60
Estimated Effective Rent (HKD psf) $50 - $65
The Center
The Wellington
99 Queen’s Road Central
198 Wellington Street Approx. Area (sq ft) 1,579 - 14,908 (G)
Approx. Area (sq ft) 3,597 up (G)
Estimated Effective Rent (HKD psf) $65 - $80
Estimated Effective Rent (HKD psf) $48 - $55
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Hong Kong
852 2822 0668 offices.hongkong@colliers.com
Page 12 | Colliers International | Moving Times
Hot Listings Central Plaza
China Resources Building
18 Harbour Road
26 Harbour Road
Approx. Area (sq ft) 1,053 - 4,628 (L)
Approx. Area (sq ft) 2,361 - 10,322 (L)
Estimated Effective Rent (HKD psf)
$55 - $65
Estimated Effective Rent (HKD psf) $50 - $58
Great Eagle Centre
Harbour Centre
Approx. Area (sq ft) 911 - 5,157 (G)
Approx. Area (sq ft) 1,222 - 14,594 (L)
Estimated Effective Rent (HKD psf) $52 - $70
Estimated Effective Rent (HKD psf) $47 - $65
Harcourt House
Hopewell Centre
Approx. Area (sq ft) 520 - 17,871 (G)
Approx. Area (sq ft) 966 - 31,412 (L)
Estimated Effective Rent (HKD psf) $34 - $40
Estimated Effective Rent (HKD psf) $52 - $60
Shui On Centre
Sun Hung Kai Centre
6-8 Harbour Road
30 Harbour Road
Approx. Area (sq ft) 1,171 - 4,765 (G)
Approx. Area (sq ft) 826 - 14,065 (L)
Estimated Effective Rent (HKD psf) $45 - $55
Estimated Effective Rent (HKD psf)
Sunlight Tower
Tai Yau Building
248 Queen’s Road East
181 Johnston Road
Approx. Area (sq ft) 792 - 3,834 (G)
Approx. Area (sq ft) 698 - 4,877 (G)
Estimated Effective Rent (HKD psf) $36 - $43
Estimated Effective Rent (HKD psf) $38 - $40
23 Harbour Road
39 Gloucester Road
WAN CHAI
HONG KONG ISL AND
25 Harbour Road
183 Queen’s Road East
$55 - $68
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Hong Kong
852 2822 0668 offices.hongkong@colliers.com
Colliers International | Moving Times | Page 13
CAUSEWAY BAY
HONG KONG ISL AND
Hot Listings Causeway Bay Plaza 2 463-483 Lockhart Road
Lee Garden One 33 Hysan Avenue
Approx. Area (sq ft) 3,030 - 7,500 (G)
Approx. Area (sq ft) 8,576 - 15,608 (L)
Estimated Effective Rent (HKD psf) $40 - $46
Estimated Effective Rent (HKD psf) $62 - $65
Midtown - Soundwill Plaza II 1-29 Tung Lung Street
One Hysan Avenue 1 Hysan Avenue
Approx. Area (sq ft) 2,877 - 8,645 (G)
Approx. Area (sq ft) 2,063 - 5,092 (L)
Estimated Effective Rent (HKD psf) $43 - $45
Estimated Effective Rent (HKD psf) $40 - $45
Sino Plaza
Times Square
255-257 Gloucester Road
1 Matheson Street Approx. Area (sq ft) 1,580 - 4,043 (G)
Approx. Area (sq ft) 1,184 - 17,000 (G)
Estimated Effective Rent (HKD psf) $42 - $48
Estimated Effective Rent (HKD psf) $52 - $56
Tower 535
World Trade Centre
535 Jaffe Road
280 Gloucester Road Approx. Area (sq ft) 5,964 - 11,712 (G)
Approx. Area (sq ft) 1,818 - 6,900 (G)
Estimated Effective Rent (HKD psf) $50 - $55
Estimated Effective Rent (HKD psf) $52 - $58
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Hong Kong
852 2822 0668 offices.hongkong@colliers.com
Page 14 | Colliers International | Moving Times
Hot Listings @Convoy
18 King Wah Road
169 Electric Road
18 King Wah Road Approx. Area (sq ft) 2,074 - 10,153 (G)
Approx. Area (sq ft) 14,856 up (L)
Estimated Effective Rent (HKD psf) $31 - $35
Estimated Effective Rent (HKD psf) Negotiable
ISLAND EAST
HONG KONG ISL AND
625 King’s Road
148 Electric Road
625 King’s Road
148 Electric Road
Approx. Area (sq ft) 1,685 - 4,601 (G)
Approx. Area (sq ft) 2,816 - 11,821 (G)
Estimated Effective Rent (HKD psf) $28 - $29
Estimated Effective Rent (HKD psf) $30 - $32
K Wah Centre
AIA Tower
191 Java Road
183 Electric Road Approx. Area (sq ft) 1,018 - 12,491 (L)
Approx. Area (sq ft) 2,800 - 4,200 (G)
Estimated Effective Rent (HKD psf) $43 - $45
Estimated Effective Rent (HKD psf) $25 - $27
Prosperity Millennia Plaza 663 King’s Road
Best Building in Island East Island East
Approx. Area (sq ft) 567 - 7,861 (G)
Approx. Area (sq ft) 3,699 - 6,877 (L)
Estimated Effective Rent (HKD psf) $30 - $32
Estimated Effective Rent (HKD psf) $52 - $66
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Hong Kong
852 2822 0668 offices.hongkong@colliers.com
Colliers International | Moving Times | Page 15
HONG KONG ISL AND
Recent Leasing Transactions Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Face Rent (HKD psf)
Admiralty Centre Tower 1
5,000 (G)
New Lease
Trading
$50.00
Admiralty Centre Tower 1
6,300 (G)
New Lease
Management Consultant
$47.00
Asia Standard Tower
5,600 (G)
New Lease
Beauty / Hair / Fitness
$51.50
800 (G)
New Lease
Banking & Finance
$61.00
FWD Financial Centre
6,000 (G)
New Lease
Legal
$43.00
Kinwick Centre
2,800 (G)
New Lease
Banking & Finance
$44.00
Man Yee Building
1,500 (L)
New Lease
Banking & Finance
$80.00
Nan Fung Tower
5,400 (G)
New Lease
Government / Organisation
$59.50
CENTRAL / ADMIRALTY
Bank of America Tower
Two IFC
23,600 (L)
Renewal
Banking & Finance
$150.00
Two IFC
45,100 (L)
Renewal
Banking & Finance
$127.50
Wing On House
5,900 (G)
New Lease
Banking & Finance
$50.00
World-Wide House
4,400 (G)
New Lease
Banking & Finance
$65.00
Central Plaza
4,600 (L)
New Lease
Banking & Finance
$56.00
Central Plaza
10,500 (L)
Renewal
I.T.
$55.00
Central Plaza
19,700 (L)
Renewal
Insurance
$53.50
Central Plaza
28,800 (L)
Renewal
Insurance
$53.50
Fortis Tower
6,400 (G)
Renewal
Accounting
$37.50
Harbour Centre
3,600 (G)
New Lease
Trading
$67.00
Jubilee Centre
6,600 (G)
New Lease
Banking & Finance
$40.00
Sun Hung Kai Centre
11,000 (L)
Renewal
Beauty / Hair / Fitness
$56.00
Sunlight Tower
2,500 (G)
New Lease
Government / Organisation
$57.00
The Hennessy
3,500 (G)
Renewal
Media
$35.00
Causeway Bay Plaza 1
2,700 (G)
New Lease
Accounting
$38.00
Hysan Place
16,100 (L)
New Lease
I.T.
$82.00
World Trade Centre
3,300 (G)
New Lease
Beauty / Hair / Fitness
$53.00
Berkshire House
10,900 (L)
New Lease
I.T.
$44.50
Berkshire House
32,200 (L)
New Lease
Insurance
$43.00
Island Place Tower
9,300 (G)
New Lease
Banking & Finance
$32.00
Two Chinachem Exchange Square
4,600 (G)
New Lease
Banking & Finance
$22.00
4,500 (G)
New Lease
Design / Advertising
$26.00
WA N CH A I / C AUS E WAY BAY
IS L AND E AST
WO NG CH U K H A N G Global Trade Square
(G) = Gross
(L) = Lettable
(N) = Net
Page 16 | Colliers International | Moving Times
KWAI CHUNG KWUN TONG HUNG HOM MONG KOK SAN PO KONG TSIM SHA TSUI TSUEN WAN
Kowloon
KOWLOON BAY
KOWLOO N
Joint Sole Marketing and Leasing Consultant
Goldin Financial Global Centre 17 Kai Cheung Road > > > > > >
The only brand-new Grade A office development in Kowloon East in 2016 Sizable single floor area of approximately 34,000 sq ft gross Nice seaview High efficiency Ample car parking spaces LEED Platinum Certificate (Provisional) and BEAM Plus Gold Certificate (Provisional) > Free shuttle bus service to Kowloon Bay MTR Station (planned) > Self-contained high end F&B > Target completion in Q2 2016
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Page 18 | Colliers International | Moving Times
Alex Siu (S-525905) 852 2822 0763
alex.siu@colliers.com
KOWLOO N
Colliers International | Moving Times | Page 19
KWAI CHUNG
KOWLOO N
Sole Marketing Agent
KC100
100 Kwai Cheong Road
> > > > >
Approx. area: 7,384 - 24,663 sq ft gross Immediate available Quality building specifications F&B on retail floor 7 minutes’ walking distance to Kwai Hing MTR station
Typical Floor Plan (For identification purpose only)
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Page 20 | Colliers International | Moving Times
Alex Siu (S-525905) 852 2822 0763
alex.siu@colliers.com
KOWLOO N
SAN PO KONG
Lead Marketing Agent
On Tin Centre 1 Sheung Hei Street
> Typical floor area: 3,300 sq ft gross approx. > Greenery garden view & open city view > 8 minutes’ walk to Diamond Hill MTR station
Typical Floor Plan (For identification purpose only)
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Nathan Chan (S-477875) 852 2822 0795
nathan.chan@colliers.com Colliers International | Moving Times | Page 21
TSEUN WAN
KOWLOO N
Hot Listing
Page 22 | Colliers International | Moving Times
KOWLOO N
CDW Building
382-392 Castle Peak Road > > > >
Typical floor area: 40,200 sq ft gross approx. 5 minutes walking distance to Tsuen Wan MTR station Surrounded by various Hotel and F&B facilities On top of shopping mall
Fiona Ngan (E-197789) 852 2822 0751
fiona.ngan@colliers.com
Murphy Chung (E-216220) 852 2822 0755
murphy.chung@colliers.com Colliers International | Moving Times | Page 23
KWAI CHUNG
KOWLOO N
Joint Sole Marketing Agent
Manulife Financial Centre 223-231 Wai Yip Street
Floor plan (For identification purpose only)
> > > > >
Approx. area: 31,000 sq ft gross 180-degree harbour view Consecutive floors available in Q2 2016 Strategically located in the heart of Kowloon East Superb dining and leisure amenities nearby
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Page 24 | Colliers International | Moving Times
Alex Siu (S-525905) 852 2822 0763
alex.siu@colliers.com
Joint Sole Agent
Nanyang Plaza 57 Hung To Road > > > >
Approx. area: 1,726 - 6129 sq ft gross High quality industrial / office building 7 minutes’ walking distance to Kwun Tong MTR station Supported by F&B and banking facilities nearby
Steve Ng (E-188091) 852 2822 0753
steve.ng@colliers.com
Jonathan Chan (S-467510) 852 2822 0762
jonathan.chan@colliers.com
MONG KOK
Joint Sole Agent
Attilio Building 579 Nathan Road > > > > >
KWUN TONG
KOWLOO N
Typical floor area: 1,557 sq ft gross Competitive rental package Close to MTR station Supported by F&B and Banking Facilities Suitable for office or semi-retail tenants
Jonathan Chan (S-467510) 852 2822 0762
jonathan.chan@colliers.com
Edward Cheung (S-518296) 852 2822 0761
edward.cheung@colliers.com Colliers International | Moving Times | Page 25
KOWLOON BAY
KOWLOO N
Hot Listings
Skyline Tower 39 Wang Kwong Road > > > >
Approx. area: 1,043 - 15,379 sq ft gross Competitive rental package Efficient floorplate Good tenancy mix within the portfolio
Ella Lai (S-342139) 852 2822 0758 ella.lai@colliers.com
Nathan Chan (S-477875) 852 2822 0795
nathan.chan@colliers.com
Enterprise Square 5 38 Wang Chiu Road > > > >
Typical floor area: 15,960 - 18,590 sq ft gross Panoramic seaview Consecutive floors available in Q2 2016 On top of Megabox shopping mall
Ivan Wong (E-241525) 852 2822 0756
ivan.wong@colliers.com Page 26 | Colliers International | Moving Times
Wang Cheung (E-242098) 852 2822 0757
wang.cheung@colliers.com
Hot Listing
Hong Kong K11 Office 20 Salisbury Road > > > > >
Approx. area: 28,000 sq ft gross Grade A office specification 270-degree harbour view Direct connection to East Tsim Sha Tsui MTR station Target completion in Q1 2017
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Patrick Mak (E-187858) 852 2822 0752
patrick.mak@colliers.com
CHEUNG SHA WAN
Hot Listing
D2 Place Two 15 Cheung Shun Street > > > > >
Typical floor area: 25,405 sq ft gross Consecutive floors available Close to MTR Station Supported by F&B and banking facilities Immediate available
Fiona Ngan (E-197789) 852 2822 0751
fiona.ngan@colliers.com
TSIM SHA TSUI KOWLOON BAY
KOWLOO N
Amy Kong (S-215433) 852 2822 0760
amy.kong@colliers.com Colliers International | Moving Times | Page 27
TSIM SHA TSUI
KOWLOO N
Hot Listings
Miramar Tower 1-23 Kimberley Road > > > >
Approx. area: 828 - 38,750 sq ft gross Overlook Kowloon Park On top of a large shopping mall and next to hotel Easy access by various transport modes
Patrick Mak (E-187858) 852 2822 0752
KWUN TONG
patrick.mak@colliers.com
Simon Yu (S-414452) 852 2822 0759
simon.yu@colliers.com
Hot Listing
AXA Tower / AIA Kowloon Tower 102 How Ming Street > > > > >
Approx. area: 3,126 - 15,339 sq ft gross Modern Grade A office specifications 6 minutes walking distance to Kwun Tong MTR station Nice seaview Both bare shell and fitted out units are available in this building
Fiona Ngan (E-197789) 852 2822 0751
fiona.ngan@colliers.com Page 28 | Colliers International | Moving Times
Ivan Wong (E-241525) 852 2822 0756
ivan.wong@colliers.com
KOWLOO N
CHEUNG SHA WAN KOWLOON BAY
Hot Listing
Manhattan Place 23 Wang Tai Road > > > > > >
Approx. area: 6,065 - 20,860 sq ft lettable Panoramic seaview Consecutive floors available in Q2 2016 Next to large shopping mall “Megabox� Grade A office building in Kowloon Bay Good tenancy mix in its portfolio
Fiona Ngan (E-197789) 852 2822 0751
fiona.ngan@colliers.com
MONG KOK
Hot Listing
Grand Century Place 193 Prince Edward Road West > > > >
Approx. area: 2,803 - 20,808 sq ft gross On top of a large shopping mall and next to hotel Direct connection to Mong Kok East MTR station Supported by F&B and banking facilities nearby
Steve Ng (E-188091) 852 2822 0753
steve.ng@colliers.com
Simon Yu (S-414452) 852 2822 0759
simon.yu@colliers.com Colliers International | Moving Times | Page 29
CHEUNG SHA WAN
KOWLOO N
Hot Listings
9 Wing Hong Street > Approx. area: 846 - 12,018 sq ft gross > Good tenancy mix within the portfolio > 3 minutes away from MTR station
Floor plan (For identification purpose only)
Murphy Chung (E-216220) 852 2822 0755
murphy.chung@colliers.com
Simon Yu (S-414452) 852 2822 0759
simon.yu@colliers.com
Cheung Sha Wan Plaza 833 Cheung Sha Wan Road > > > >
Approx. area: 625 - 11,290 sq ft gross Surrounded by F&B facilities Porfolio landlord On top of MTR station
Murphy Chung (E-216220) 852 2822 0755
murphy.chung@colliers.com Page 30 | Colliers International | Moving Times
Edward Cheung (S-518296) 852 2822 0761
edward.cheung@colliers.com
KOWLOO N
HUNG HOM KOWLOON BAY
Hot Listing
The Harbourfront 18-22 Tak Fung Street
Approx. area: 907 - 23,386 sq ft gross Panoramic habour view Adjacent to Hung Hom Ferry Pier and bus terminus Consecutive floors available in Q4 2016
Simon Yu (S-414452) 852 2822 0759
simon.yu@colliers.com
Rose Tam (S-496380) 852 2822 0764
rose.tam@colliers.com
Hot Listing
Ever Gain Plaza 88 Container Port Road > > > > >
Approx. area: 1,110 - 23,642 sq ft gross Immediately available 8-10 minutes walking distance to Kwai Fong MTR station Good tenancy mix within the portfolio Consecutive floors available in Q2 2016
Patrick Mak (E-187858) 852 2822 0752
patrick.mak@colliers.com
KWAI CHUNG
> > > >
Murphy Chung (E-216220) 852 2822 0755
murphy.chung@colliers.com Colliers International | Moving Times | Page 31
TSIM SHA TSUI
KOWLOO N
Hot Listings Chinachem Golden Plaza
China Hong Kong City
China Minmetals Tower
Approx. Area (sq ft) 660 - 11,109
Approx. Area (sq ft) 3,130 - 7,356
Approx. Area (sq ft) 1,480 - 16,321
Estimated Effective Rent (HKD psf) $31.5 - $38
Estimated Effective Rent (HKD psf) $34 - $37
Estimated Effective Rent (HKD psf) $28 - $30
Star House
The Gateway Tower 1
The Gateway Tower 2
33 Canton Road
3 Salisbury Road
79 Chatham Road South
25 Canton Road
77 Mody Road
25 Canton Road
Approx. Area (sq ft) 920 - 18,851
Approx. Area (sq ft) 1,069 - 4,936
Approx. Area (sq ft) 1,450 - 18,600
Estimated Effective Rent (HKD psf) $37 - $40
Estimated Effective Rent (HKD psf) $44 - $52
Estimated Effective Rent (HKD psf) $47 - $58
The Gateway Tower 3&5
The Gateway Tower 6
World Finance Centre
Approx. Area (sq ft) 1,468 - 47,211
Approx. Area (sq ft) 1,610 - 14,023
Approx. Area (sq ft) 693 - 38,796
Estimated Effective Rent (HKD psf) $45 - $58
Estimated Effective Rent (HKD psf) $50 - $65
Estimated Effective Rent (HKD psf) $37 - $39
21 Canton Road
9 Canton Road
17 Canton Road
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Page 32 | Colliers International | Moving Times
Hot Listings King Palace Plaza
55 King Yip Street, Kwun Tong
Lu Plaza
2-4 Wing Yip Street, Kwun Tong
Approx. Area (sq ft) 12,682
Approx. Area (sq ft) 2,000 - 23,000
Estimated Effective Rent (HKD psf) $22 - $24
Estimated Effective Rent (HKD psf) $16 - $19
Millennium City 1
388 Kwun Tong Road, Kwun Tong
Millennium City 2
378 Kwun Tong Road, Kwun Tong
Approx. Area (sq ft) 850 - 20,584
Approx. Area (sq ft) 1,000 - 3,239
Estimated Effective Rent (HKD psf) $29 - $31
Estimated Effective Rent (HKD psf) $25 - $26.5
Millennium City 5
418 Kwun Tong Road, Kwun Tong
Paul Y Centre
51 Hung To Road, Kwun Tong
Approx. Area (sq ft) 2,361 - 8,584
Approx. Area (sq ft) 1,112 - 16,335
Estimated Effective Rent (HKD psf) $29 - $34
Estimated Effective Rent (HKD psf) $19.5 - $21
Pioneer Place
213 Wai Yip Street, Kwun Tong
KOWLOON KOWLOONEAST BAY
KOWLOO N
SML Tower
165 Hoi Bun Road, Kwun Tong
Approx. Area (sq ft) 6,039 - 26,715
Approx. Area (sq ft) 8,400 - 8,600
Estimated Effective Rent (HKD psf) $20 - $22
Estimated Effective Rent (HKD psf) $15 - $17
Office Services - Kowloon
852 2822 0722 offices.kowloon@colliers.com
Colliers International | Moving Times | Page 33
KOWLOON EAST
KOWLOO N
Hot Listings Listing Rykadan Capital Tower 135 Hoi Bun Road, Kwun Tong
South Asia Commercial Centre 64 Tsun Yip Street, Kwun Tong
Approx. Area (sq ft) 900 - 12,606
Approx. Area (sq ft) 7,019 - 10,153
Estimated Effective Rent (HKD psf) $22 - $26
Estimated Effective Rent (HKD psf) $21 - $23
Billion Centre
1 Wang Kwong Road, Kowloon Bay
Center Parc
11 Sheung Yuet Road, Kowloon Bay Approx. Area (sq ft) 17,729 - 28,420
Approx. Area (sq ft) 1,565 - 12,590
Estimated Effective Rent (HKD psf) $20 - $24
Estimated Effective Rent (HKD psf) $26 - $30
Chevalier Commercial Centre 8 Wang Hoi Road, Kowloon Bay
Enterprise Square 3
39 Wang Chiu Road, Kowloon Bay
Approx. Area (sq ft) 1,670 - 31,400
Approx. Area (sq ft) 2,360 - 16,100
Estimated Effective Rent (HKD psf) $19 - $21
Estimated Effective Rent (HKD psf) $25 - $27
Exchange Tower
33 Wang Chiu Road, Kowloon Bay Approx. Area (sq ft) 1,007 - 12,205 Estimated Effective Rent (HKD psf) $25 - $30
Octa Tower
8 Lam Chak Street, Kwun Tong Approx. Area (sq ft) 11,900 - 23,800 Estimated Effective Rent (HKD psf) $19 - $23
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Kowloon
852 2822 0722 offices.kowloon@colliers.com
Page 34 | Colliers International | Moving Times
Hot Listings Harbourfront Landmark
18-22 Tak Fung Street, Hung Hom
The Metropolis Tower
10 Metropolis Drive, Hung Hom
Approx. Area (sq ft) 30,000
Approx. Area (sq ft) 1,000 - 13,000
Estimated Effective Rent (HKD psf) $27 - $28
Estimated Effective Rent (HKD psf) $32 - $37
Park-In Commercial Centre 56 Dundas Street, Mong Kok
Skyway House
3 Sham Mong Road, Tai Kok Tsui
Approx. Area (sq ft) 430 - 17,976
Approx. Area (sq ft) 7,279 - 32,024
Estimated Effective Rent (HKD psf) $30 - $37
Estimated Effective Rent (HKD psf) $14.5 - $17
AIA Financial Centre
712 Prince Edward Road East, San Po Kong
Stelux House
698 Prince Edward Road East, San Po Kong
Approx. Area (sq ft) 2,851 - 11,849
Approx. Area (sq ft) 1,800 - 13,300
Estimated Effective Rent (HKD psf) $20 - $22
Estimated Effective Rent (HKD psf) $18 - $20
Delta House
OTHERS
KOWLOO N
Grand Central Plaza
3 On Yiu Street, Sha Tin
138 Sha Tin Rural Committee Road, Sha Tin Approx. Area (sq ft) 600 - 4,400
Approx. Area (sq ft) 811 - 4,913
Estimated Effective Rent (HKD psf) $17 - $20
Estimated Effective Rent (HKD psf) $32 - $34
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Kowloon
852 2822 0722 offices.kowloon@colliers.com
Colliers International | Moving Times | Page 35
KOWLOON WEST
KOWLOO N
Hot Listings 909 Cheung Sha Wan Road
Billion Plaza II
Cheung Sha Wan
8 Cheung Yue Street, Cheung Sha Wan
Saxon Tower
Approx. Area (sq ft) 1,608 - 9,138
Approx. Area (sq ft) 2,000 - 11,600
Approx. Area (sq ft) 900 - 8,000
Estimated Effective Rent (HKD psf) $27 - $29
Estimated Effective Rent (HKD psf) $26 - $27
Estimated Effective Rent (HKD psf) $26 - $28
7 Cheung Shun Street, Cheung Sha Wan
Manhattan Centre
Metroplaza Tower 1
Millennium Trade Centre
223 Hing Fong Road, Kwai Chung
56 Kwai Cheong Road, Kwai Chung
Approx. Area (sq ft) 975 - 15,800
Approx. Area (sq ft) 856 - 2,863
Approx. Area (sq ft) 1,270 - 2,500
Estimated Effective Rent (HKD psf) $14.5 - $16
Estimated Effective Rent (HKD psf) $28 - $33
Estimated Effective Rent (HKD psf) $19 - $21
Properity Centre
Yoo Hoo Tower
The Octagon
Approx. Area (sq ft) 7,500 - 15,000
Approx. Area (sq ft) 4,084 - 8,169
Approx. Area (sq ft) 1,226 - 15,000
Estimated Effective Rent (HKD psf) $17 - $18
Estimated Effective Rent (HKD psf) $17
Estimated Effective Rent (HKD psf) $15 - $20
8 Kwai Cheong Road, Kwai Chung
77-81 Container Port Road, Kwai Fong
38-42 Kwai Fung Crescent, Kwai Fong
6 Sha Tsui Road, Tsuen Wan
Estimated effective rent (HK$ per sq ft) is calculated by deducting incentives for a 36-month term from the face rental and is NOT the landlord’s quoted figure. (G) = Gross
(L) = Lettable
(N) = Net
Office Services - Kowloon
852 2822 0722 offices.kowloon@colliers.com
Page 36 | Colliers International | Moving Times
KOWLOO N
Recent Leasing Transactions Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
TSIM SHA TSUI Banking / Finance / Insurance
$36.83
Renewal
Manufacturing
$31.50
8,436 (G)
Renewal
Others
$53.00
Tsimshatsui Centre
4,067 (G)
Renewal
Consumer Products
$40.00
Ocean Centre
4,005 (G)
New Letting
Shipping / Logistic
$38.00
6,739 (G)
New Letting
Others
$31.00
Enterprise Square Five - Tower 2
17,400 (G)
New Letting
Others
$27.00
Millennium City 2
10,690 (G)
New Letting
Banking / Finance / Insurance
$27.30
Octa Tower
23,800 (G)
New Letting
IT&T
$19.00
18,972 (G)
New Letting
Banking / Finance / Insurance
$29.00
Cheung Sha Wan Plaza 1
15,320 (G)
New Letting
Consumer Products
$21.00
Kowloon Commerce Centre Tower 1
15,847 (G)
New Letting
Consumer Products
$33.00
15815 (G)
New Letting
Shipping / Logistics
$14.89
69,476 (G)
New Letting
Banking / Finance / Insurance
$30.00
6,023 (G)
New Letting
IT&T
$25.03
Renewal
IT&T
$28.50
4,716 (G)
New Letting
IT&T
$33.00
11,892 (G)
New Letting
Consumer Products
$41.00
5,900 (G)
Renewal
Logistic
$19.40
6,634 (G)
Renewal
Manufacturing
$30.00
8 Observatory Road
7,105 (G)
New Letting
China Hong Kong City Tower 6
5,131 (G)
Miramar Tower
KOWLOON EAST AIA Kowloon Tower
One Harbour Square KOWLOON WEST
Manhattan Centre Metroplaza Tower 1 KC100 HUNG HOM The Harbourfront Tower 1 The Metropolis Tower
13,608 (G)
MONG KOK Langham Place SAN PO KONG AIA Financial Centre NEW TER RITORIES Grand Central Plaza Tower 2 (G) = Gross
(L) = Lettable
(N) = Net
Colliers International | Moving Times | Page 37
COLLIERS INTERNATIONAL | MARKE T OVERVIEW
HONG KONG’S
HEART Normal service resumed as Central rents outperform other districts After the double whammy of the Global Finance Crisis and the European Debt Crisis, corporations in the banking and finance industry turned cautious in their business strategies. A group of cost-conscious tenants relocated from Central and Admiralty to other districts on Hong Kong Island. That resulted in a gradual contraction in the rental premium that Central and Admiralty command over other districts, from a high of 143% in Q4 2010 to a low point of 68% in Q4 2014. The ongoing internationalization of the Chinese yuan and the Beijing government’s “Going Out” policy have jointly prompted mainland corporates to expand into Hong Kong. This trend has become particularly pronounced over the last two years. The growing demand from mainland corporations and other small-to-medium size companies has pushed the vacancy rate in Central and Admiralty down to just 1.7% in Q4 2015.
BEAT
Colliers View
Looking ahead, new supply in the major business districts on Hong Kong Island will remain limited. There are only two new projects in Central and North Point in 2016, which will add total gross floor area of about 471,000 sq ft Grade A office space. The demand-supply imbalance on Hong Kong Island is likely to prevail until the completion of Lee Garden Three in Causeway Bay and the redevelopment of Somerset House in Island East in 2018, which will provide an additional total gross floor area of about 1.5 million sq ft. Upon the expected completion of the MTR South Island Line (East) in Q4 2016, office developments in Wong Chuk Hang could become viable options for a group of cost-conscious tenants. Three new office-development projects are expected to be completed between 2016 and 2018, providing a total gross floor area of about 871,000 sq ft. The surge of about 15% in average rents in Central and Admiralty over the course of 2015 has widened the band of their rental premium over other districts to about 83%. Nevertheless, the premium is yet to return to the long-term average of 97%.
On the back of sustained demand and the low vacancy rate, rents in Central and Admiralty increased 5.2% quarter-on-quarter in Q4 2015, well above the 0.6% to 2.4% growth seen in other districts on Hong Kong Island.
A tenant’s market for Kowloon Amid sustained weak performance in external trade, a group of companies in the trading, sourcing and shipping industries have become very cost-conscious in managing their real-estate requirements. For instance, Andre Buying has opted to relocate its 8,000-sq ft office in Tsim Sha Tsui to Millennium City in Kwun Tong. The company will take up the same amount of space at the new address but there will be rental savings of about 30% compared with the previous lease.
Page 38 | Colliers International | Moving Times
Colliers View External trade performance will remain weak over the near term amid the current slowdown in mainland economic growth. The demand for office premises in Tsim Sha Tsui and Kowloon East from sourcing and trading companies, a major group of occupiers in these districts, will remain soft. Nevertheless, the demand from insurance companies will provide some support for the performance of rents in Tsim Sha Tsui and Kwun Tong. Kowloon Bay will be the weakest link in 2016 due to an oversupply issue. In the first half of 2016, major backfill activity including Hang Seng Bank’s lease expiry and a few cases of space being surrendered will release a total of about 286,000 sq ft into the market. On top of that, the scheduled opening of the Goldin Financial Global Centre will add a total gross floor area of about 852,500 sq ft to the district. The upcoming vacancy will push up Grade A office vacancy rate to about 15% in Kowloon Bay by middle of this year. Landlords have become more flexible in lease negotiations, aiming to retain existing tenants and to attract new clients. We have observed individual landlords in Kowloon East offering rental caps to new tenants with size requirements of over 20,000 sq ft. The last time landlords were offering such favourable terms was during the market downturn of 2008-09.
COLLIERS INTERNATIONAL | MARKE T OVERVIEW
Central regains its rent-premium luster We anticipate rental growth in Central and Admiralty will continue to outperform other districts over the near term as more and more mainland corporates flow into the city, and as those that are already here expand their Hong Kong operations.
Grade A Office Rental Premium Central and Admiralty versus other Hong Kong Island districts
Mid-size tenants in Central opting for split operations In the past, there has been a lack of suitable premises to accommodate expansionary demand, which in turn resulted in a substantial escalation in rents. These have been the major factors triggering a group of tenants in Central with space requirements of over 100,000 sq ft to consider split operations. The scheduled completion of the Shanghai Commercial Bank Tower in 2016 will not be enough to relieve the situation of tight supply that prevails in Central and Admiralty.
180%
Colliers View
160% 140% 120% 100%
Q4 2015:
Long-term Average: 97%
83%
80% 60% 40% 20%
We expect a group of cost-conscious tenants to look for property alternatives in other districts, and to consider the option of split operations. For the first time, this is particularly true in the case of smaller banking and finance institutions that occupy less than 50,000 sq ft in Central. Unlike in past cycles, it is these mid-size tenants that are now considering split operations.
Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15
0%
Source: Colliers
Mild improvement in sales activity Mainland firms surprised the market with two en bloc transactions in a slow market. For instance, China Life Insurance Overseas announced the acquisition of a portion of One HarbourGate in Hung Hom from Wheelock for a total of HK$5.8 billion, for self-use. Overseas funds are interested in core-plus premises with an initial annual yield of 3% to 4% as well as properties with room for value-add plays. Phoenix Property Advisors acquired five offices floors and other premises in Enterprise Square Three in Kowloon Bay from Esprit for HK$918 million. The vendor will lease back a major portion of the premises for six years. The deal highlights the interest of investment funds in high-quality strata-title office premises that can provide attractive rental return.
Colliers view Landlords have become flexible in price negotiations in view of the gloomy economic outlook and the onset of rising interest rates, which has drawn interest from potential buyers of office premises, leading to a pickup in sales activity. We expect this trend to continue in 2016. Looking forward, we anticipate that end users and overseas funds will remain the major buyers of en bloc properties, with pricing levels to remain stable in 2016. On the strata-title market front, we anticipate more vendors will offer their properties for sale to take profit off the table, so there will be an increasing risk of price corrections with further interest rate hikes ahead apparently assured.
Colliers International | Moving Times | Page 39
Colliers International Agency Limited Company Licence No: C-006069
Office Services - Hong Kong 5701 Central Plaza, 18 Harbour Road Wanchai, Hong Kong Tel: 852 2822 0668 Fax: 852 2107 6060 Email: offices.hongkong@colliers.com
www.colliers.com/hongkong
Office Services - Kowloon Unit 2309, 23/F BEA Tower, Millennium City 5 418 Kwun Tong Road, Kwun Tong, Kowloon Tel: 852 2822 0722 Fax: 852 2117 3311 Email: offices.kowloon@colliers.com