HONG KONG EDITION
MAY 2014
Hong Kong Commercial Real Estate at Your Fingertips
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HONG KONG
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The China Factor Matters The best of the best
Market outlook
A comprehensive portfolio showcasing premier office leasing opportunities across Hong Kong
Kowloon East showing signs of rental decline
Oversupply in Kowloon East means price slide is unavoidable
32
h o n g ko n g ’ s
Heart Beat
Oversupply in Kowloon East means price slide is unavoidable
c over S tory
Hong Kong Island Sole Agency Appointments Special Listings
5 6 8
Hot Listings Recent Leasing Transactions
14
Kowloon Sole Agency Appointments Joint Sole Agency Appointment Hot Listings Recent Leasing Transactions
16 21 22 31
Key to Property icons Seaview
Mountain View
Garden 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). Š2014. All rights reserved.
central admiralty SHEUNG WAN wan chaI causeway bay island east
Hong Kong Island
Sole Agent
3 Lockhart Road > > > > > > >
Approx. area: 1,435 - 4,604 sq ft gross Landlord’s provisions: Full ceiling systems and carpet Clean, newly renovated premises Column-free design floorplate Close proximity to hotels Close to public transportation Availability: Immediate
wan chai
hong kong isl and
Typical floor plan (For identification purpose only)
Office Services - Hong Kong 852 2822 0668 offices.hongkong@colliers.com Company Licence No: C-006069
central
Sole Agent
The Center
99 Queen’s Road Central > > > > > > > >
Surrender space Approx. area: 6,200 sq ft gross Partial seaview and mountain view Fitted premises in excellent condition 2 conference rooms and 9 manager rooms Raised floor Prominent tenancy profile Availability: Negotiable
Ryan Tong (S-322048)
James Lai (S-415275)
852 2822 0613 | 852 9229 6000 ryan.tong@colliers.com
852 2822 0548 | 852 9367 1850 james.lai@colliers.com Colliers International | Moving Times | Page 5
admiralty
hong kong isl and
Sole Agent
Lippo Centre 89 Queensway
wong chuk hang
> > > > > >
Approx. area: 1,565 sq ft gross Harbour view Fully fitted premises in excellent condition Furnished office Attractive rental package Availability: Negotiable
Caris Yeung (S-106301)
Philip Pang (S-460890)
852 2822 0576 | 852 9326 5256 caris.yeung@colliers.com
852 2822 0729 | 852 6017 9108 philip.pang@colliers.com
Special Listing
Wong Chuk Hang Close to Wong Chuk Hang MTR Station. South Island Line (East): Expected Completion in 2015
Global Trade Square 21 Wong Chuk Hang Road
> Typical floor area: Approx. 9,700 sq ft gross > Availability: 2Q 2014
Genesis
33-35 Wong Chuk Hang Road > Typical floor area: Approx 16,700 sq ft gross > Availability: 2Q 2014
Office Services - Hong Kong 852 2822 0668 offices.hongkong@colliers.com Company Licence No: C-006069
Page 6 | Colliers International | Moving Times
Global Trade Square 21 Wong Chuk Hang Road
Genesis 33-35 Wong Chuk Hang Road
Special Listing
Fully Fitted Law Firm Premises in Core Central Queen’s Road Central
Surrender space High zone Approx. area: 12,500 sq ft net Approx. 100% efficiency 24-hour zoned central air-conditioning Direct Central MTR Station access Connected to the Central walkway network Availability: To be confirmed
Liam McCartan (E-239988)
David Wood (S-308367)
852 2822 0685 | 852 9739 0577 liam.mccartan@colliers.com
852 2822 0694 | 852 9862 1573 david.wood@colliers.com
Special Listing
Iconic Office Building in West Kowloon > > > > >
Low zone and Mid zone Whole floors Approx. area: 22,000 – 37,000 sq ft gross Panoramic seaview On top of major shopping mall and connected to Kowloon MTR Station > Availability: Immediate / 1 year pre-commitment basis
Michael Nardella (S-313821)
Office Services - Hong Kong
852 2822 0681 | 852 6473 7483 michael.nardella@colliers.com
852 2822 0668 offices.hongkong@colliers.com
tsim Sha Tsui
> > > > > > > >
Central
hong kong isl and
Company Licence No: C-006069
Colliers International | Moving Times | Page 7
Central / admiralty
hong kong isl and
Hot Listings Bank of China Tower 1 Garden Road
Cheung Kong Center 2 Queen’s Road Central
Approx. Area (sq ft) 8,438 - 24,086 (L)
Approx. Area (sq ft) 2,379 - 10,577 (L)
Estimated Effective Rent (HKD psf) $70 - $75
Estimated Effective Rent (HKD psf) $120 - $130
Citibank Plaza - Citibank Tower 3 Garden Road
Citibank Plaza - ICBC Tower 3 Garden Road
Approx. Area (sq ft) 1,650 - 140,569 (L)
Approx. Area (sq ft) 954 - 115,137 (L)
Estimated Effective Rent (HKD psf) $65 - $75
Estimated Effective Rent (HKD psf) $65 - $75
CITIC Tower
Club Lusitano
1 Tim Mei Avenue
16 Ice House Street Approx. Area (sq ft) 3,253 - 36,160 (L)
Approx. Area (sq ft) 3,092 - 9,276 (G)
Estimated Effective Rent (HKD psf) $55 - $65
Estimated Effective Rent (HKD psf) $45 - $50
Entertainment Building 30 Queen’s Road Central
Hutchison House 10 Harcourt Road
Approx. Area (sq ft) 1,475 - 4,943 (L)
Approx. Area (sq ft) 403 - 26,541 (G)
Estimated Effective Rent (HKD psf) $65 - $75
Estimated Effective Rent (HKD psf) $50 - $65
Estimated effective rent (HK$ 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 8 | Colliers International | Moving Times
Hot Listings Lippo Centre
Man Yee Building
89 Queensway
60-68 Des Voeux Road Central Approx. Area (sq ft) 1,261 - 11,173 (G)
Approx. Area (sq ft) 2,744 - 11,482 (L)
Estimated Effective Rent (HKD psf) $45 - $62
Estimated Effective Rent (HKD psf) $68 - $72
Nan Fung Tower
84-86 Connaught Road Central
Nexxus Building
77 Des Voeux Road Central
Approx. Area (sq ft) 3,411 - 7,774 (G)
Approx. Area (sq ft) 2,724 - 6,512 (L)
Estimated Effective Rent (HKD psf) $36 - $38
Estimated Effective Rent (HKD psf) $60 - $65
One International Finance Centre 1 Harbour View Street
Central / admiralty
hong kong isl and
Prosperity Tower
39 Queen’s Road Central Approx. Area (sq ft) 2,248 - 10,000 (L)
Approx. Area (sq ft) 1,720 - 5,483 (G)
Estimated Effective Rent (HKD psf) $125 - $135
Estimated Effective Rent (HKD psf) $55 - $65
Two International Finance Centre
The Centrium
8 Finance Street
60 Wyndham Street Approx. Area (sq ft) 1,161 - 8,736 (G)
Approx. Area (sq ft) 1,608 - 13,483 (L)
Estimated Effective Rent (HKD psf) $30 - $50
Estimated Effective Rent (HKD psf)
$120 - $150
Estimated effective rent (HK$ 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 9
sheung wan
hong kong isl and
Hot Listings FWD Financial Centre 308 Des Voeux Road Central
Golden Centre
188 Queen’s Road Central
Approx. Area (sq ft) 890 - 8,016 (G)
Approx. Area (sq ft) 2,186 - 5,385 (G)
Estimated Effective Rent (HKD psf) $35 - $36
Grand Millennium Plaza, COSCO Tower 183 Queen’s Road Central
Estimated Effective Rent (HKD psf) $36 - $38
One8One Queen’s Road Central 181 Queen’s Road Central
Approx. Area (sq ft) 1,080 - 20,506 (G)
Approx. Area (sq ft) 1,803 - 15,451 (G)
Estimated Effective Rent (HKD psf) $42 - $58
Estimated Effective Rent (HKD psf) $33 - $43
Shun Tak Centre
200 Connaught Road Central
The Center
99 Queen’s Road Central
Approx. Area (sq ft) 1,199 - 13,239 (G)
Approx. Area (sq ft) 1,887 - 19,558 (G)
Estimated Effective Rent (HKD psf) $42 - $55
Estimated Effective Rent (HKD psf) $50 - $73
Estimated effective rent (HK$ 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 248 Queen’s Road East
Allied Kajima Building
Approx. Area (sq ft) 882 - 6,792 (G)
Approx. Area (sq ft) 2,806 - 9,506 (G)
Estimated Effective Rent (HKD psf) $33 - $38
Estimated Effective Rent (HKD psf) $36 - $38
Central Plaza
China Resources Building
Approx. Area (sq ft) 903 - 5,362 (L)
Approx. Area (sq ft) 1,330 - 15,471 (L)
Estimated Effective Rent (HKD psf)
$55 - $60
Estimated Effective Rent (HKD psf) $50 - $60
Dah Sing Financial Centre
Harbour Centre
Approx. Area (sq ft) 2,359 - 10,194 (L)
Approx. Area (sq ft) 1,013 - 6,575 (L)
Estimated Effective Rent (HKD psf) $52 - $58
Estimated Effective Rent (HKD psf) $47 - $65
Harcourt House
Hopewell Centre
Approx. Area (sq ft) 543 - 3,029 (G)
Approx. Area (sq ft) 651 - 30,575 (L)
Estimated Effective Rent (HKD psf) $34 - $40
Estimated Effective Rent (HKD psf) $42 - $52
Shui On Centre
Sun Hung Kai Centre
Approx. Area (sq ft) 390 - 11,501 (G)
Approx. Area (sq ft) 489 - 4,900 (L)
Estimated Effective Rent (HKD psf) $38 - $52
Estimated Effective Rent (HKD psf)
248 Queen’s Road East
18 Harbour Road
138 Gloucester Road
wan chai
hong kong isl and
26 Harbour Road
108 Gloucester Road
39 Gloucester Road
6-8 Harbour Road
25 Harbour Road
183 Queen’s Road East
30 Harbour Road
$50 - $60
Estimated effective rent (HK$ 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
causeway bay
hong kong isl and
Hot Listings Caroline Centre, Lee Gardens Two 28 Yun Ping Road
Sino Plaza
255-257 Gloucester Road
Approx. Area (sq ft) 6,532 - 9,120 (L)
Approx. Area (sq ft) 1,538 - 3,906 (G)
Estimated Effective Rent (HKD psf) $45 - $48
Estimated Effective Rent (HKD psf) $37 - $40
Soundwill Plaza
The Lee Gardens
38 Russell Street
33 Hysan Avenue Approx. Area (sq ft) 1,679 - 7,156 (G)
Approx. Area (sq ft) 2,378 - 5,113 (L)
Estimated Effective Rent (HKD psf) $42 - $47
Estimated Effective Rent (HKD psf) $45 - $63
Times Square
Top Glory Tower
1 Matheson Street
262 Gloucester Road Approx. Area (sq ft) 950 - 39,118 (G)
Approx. Area (sq ft) 1,417 - 4,624 (G)
Estimated Effective Rent (HKD psf) $47 - $55
Estimated Effective Rent (HKD psf) $43 - $46
Windsor House, ACE Tower 311 Gloucester Road
World Trade Centre 280 Gloucester Road
Approx. Area (sq ft) 1,551 - 19,897 (G)
Approx. Area (sq ft) 1,818 - 6,900 (G)
Estimated Effective Rent (HKD psf) $34 - $40
Estimated Effective Rent (HKD psf) $48 - $52
Estimated effective rent (HK$ 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 @Convoy
88 Hing Fat Street
169 Electric Road
88 Hing Fat Street Approx. Area (sq ft) 3,770 - 10,532 (G)
Approx. Area (sq ft) 1,400 - 4,200 (G)
Estimated Effective Rent (HKD psf) $36 - $37
Estimated Effective Rent (HKD psf) $27 - $28
148 Electric Road
island east
hong kong isl and
633 King’s Road
148 Electric Road
633 King’s Road Approx. Area (sq ft) 1,685 - 6,520 (G)
Approx. Area (sq ft) 7,260 - 10,045 (G)
Estimated Effective Rent (HKD psf) $26 - $27
Estimated Effective Rent (HKD psf) $29 - $32
AIA Tower
Citicorp Centre
183 Electric Road
18 Whitfield Road Approx. Area (sq ft) 1,034 - 12,899 (L)
Approx. Area (sq ft) 5,480 - 14,074 (G)
Estimated Effective Rent (HKD psf) $36 - $42
Estimated Effective Rent (HKD psf) $29 - $33
Prosperity Millennia Plaza 663 King’s Road
Best Building in Island East Island East
Approx. Area (sq ft) 568 - 8,314 (G)
Approx. Area (sq ft) 6,693 - 105,597 (L)
Estimated Effective Rent (HKD psf) $28 - $30
Estimated Effective Rent (HKD psf) $50 - $62
Estimated effective rent (HK$ 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
hong kong isl and
Recent Leasing Transactions SHEUNG WAN / CENTRAL / admiralty Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Face Rent (HKD psf)
8 Queen's Road Central AIA Central AIA Central Cheung Kong Center Citibank Plaza, Citibank Tower Infinitus Plaza Infinitus Plaza Lippo Centre - Tower 1 Nine Queen's Road Central
3,000 (L) 15,400 (L) 15,500 (L) 12,700 (L) 17,600 (L) 2,300 (G) 11,900 (G) 2,100 (G) 3,300 (G)
Banking & Finance Banking & Finance Banking & Finance Banking & Finance I.T. Engineering Legal Trading Trading
$78.00 $91.00 $97.00 $122.00 $80.00 $45.50 $45.50 $38.50 $48.00
One IFC
52,800 (L)
Banking & Finance
$124.00
St George's Building The Centrium The Landmark, Edinburgh Tower Two Exchange Square Two IFC Two IFC Two IFC Two IFC Two IFC United Centre World-Wide House
3,900 (N) 1,500 (G) 9,000 (N) 7,200 (N) 23,000 (L) 15,200 (L) 23,600 (L) 3,400 (L) 4,500 (L) 20,500 (G) 3,300 (G)
Renewal Renewal New Lease Renewal Renewal Renewal Renewal New Lease New Lease New Lease & Renewal Renewal New Lease New Lease Renewal New Lease New Lease Rent Review New Lease New Lease New Lease New Lease
Electronics Banking & Finance Legal Banking & Finance Banking & Finance Banking & Finance Banking & Finance Banking & Finance Banking & Finance Legal Banking & Finance
$86.00 $37.00 $128.00 $120.00 $132.00 $126.00 $120.00 $135.00 $120.00 $42.00 $48.00
wan chai / CAUSEWAY BAY Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Face Rent (HKD psf)
28 Hennessy Road 28 Hennessy Road BEA Harbour View Centre
4,900 (L) 4,900 (L) 4,000 (G)
Insurance Banking & Finance Legal
$54.00 $63.00 $36.00
Central Plaza
9,000 (L)
Banking & Finance
$57.00
Fortis Tower Overseas Trust Bank Building Sun Hung Kai Centre The Hennessy The Hennessy The Lee Gardens Times Square - Tower One W Square World Trade Centre World Trade Centre
6,300 (G) 2,700 (G) 6,100 (L) 3,500 (G) 3,500 (G) 4,000 (L) 800 (G) 5,500 (G) 8,800 (G) 12,800 (G)
New Lease New Lease New Lease New Lease & Renewal New Lease New Lease Renewal Renewal New Lease New Lease New Lease New Lease New Lease New Lease
Banking & Finance Accounting Sales & Marketing Natural Resources Retail Banking & Finance I.T. Beauty / Hair / Fitness Beauty / Hair / Fitness Beauty / Hair / Fitness
$42.00 $28.50 $59.50 $33.00 $27.00 $65.00 $48.60 $38.00 $56.50 $52.50
island east Building
633 King's Road Cityplaza Four
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Face Rent (HKD psf)
34,600 (G) 72.300 (L)
Renewal Renewal
Garments & Textiles Banking & Finance
$29.00 - $32.50 $44.00
TSIM SHA TSUI Building
International Commerce Centre (ICC) (G) = Gross
(L) = Lettable
(N) = Net
Page 14 | Colliers International | Moving Times
Approx Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Face Rent (HKD psf)
10,100 (G)
New Lease
Transportation & Logistics
$82.00
Kwai Chung kwun Tong Hung Hom Mong Kok San Po Kong Tsim sha tsui Tsuen wan
Kowloon
Tsim Sha Tsui
kowloo n
Sole Agent
Harbour City 7 Canton Road
> > > > >
Approx. area: 18,000 sq ft gross Sits ontop of Harbour City shopping mall Next to a 5-star hotel and great amendities Great tenancy mix within the portfolio High quality building management
Fiona Ngan (E-197789)
Patrick Mak (E-187858)
852 2822 0751 fiona.ngan@colliers.com
852 2822 0752 patrick.mak@colliers.com
Page 16 | Colliers International | Moving Times
Sole Agent
King Palace Plaza 52A Sha Tsui Road
> > > >
tsuen wan Kowloon Bay
kowloo n
Approx. area: 23,000 sq ft gross High class industrial building New renovation with deluxe decoration High floor seaview
Floor plan (For identification purpose only)
Ben Fong (S-086602) 852 2822 0799 ben.fong@colliers.com
Tommy Ng (E-220625) 852 2822 0790 tommy.ng@colliers.com Colliers International | Moving Times | Page 17
tsim sha tsui
kowloo n
Sole Agent
Empire Centre 68 Mody Road
> Approx. area: 5,400 sq ft gross > The only 5,000 sqft space available in Empire Centre > 180-degree seaview
Patrick Mak (E-187858) 852 2822 0752 patrick.mak@colliers.com
Winson Lam (E-167195) 852 2822 0754 winson.lam@colliers.com
Hongkong Offshore Centre 28 Austin Avenue
> Approx. area: 1,000 sq ft gross > Serviced office > Shopping arcades within walking distance
Floor plan (For identification purpose only)
Simon Yu (S-414452)
Jonathan Chan (S-467510)
852 2822 0759 simon.yu@colliers.com
852 2822 0762 jonathan.chan@colliers.com
Page 18 | Colliers International | Moving Times
kowloo n
tsuen wan Kowloon Bay
Sole Agent
Miramar Tower 1-23 Kimberley Road > > > >
Approx. area: 6,600 sq ft gross Fully fitted with typical office furniture Overlook Kowloon Park view On top of a large shopping mall and next to a hotel
Floor plan (For identification purpose only)
Patrick Mak (E-187858)
Winson Lam (E-167195)
Jonathan Liu (E-328848)
852 2822 0752 patrick.mak@colliers.com
852 2822 0754 winson.lam@colliers.com
852 2822 0760 jonathan.liu@colliers.com
The Gateway 1 25 Canton Road
> Approx. area: 5,000 sq ft gross > Rare 5,000 sq ft space on high floor of The Gateway > Move-in condition with furniture
Floor plan (For identification purpose only)
Patrick Mak (E-187858)
Steve Ng (E-188091)
Winson Lam (E-167195)
852 2822 0752 patrick.mak@colliers.com
852 2822 0753 steve.ng@colliers.com
852 2822 0754 winson.lam@colliers.com Colliers International | Moving Times | Page 19
kwun tong
kowloo n
Sole Agent
Manulife Financial Centre 223-231 Wai Yip Street > > > >
Approx. area: 5,200 sq ft gross Grade A office specification Panoramic seaview With clubhouse and shuttle bus facilities to/from APM
Ivan Wong (E-241525)
Joe Cheng (E-225818)
852 2822 0756 ivan.wong@colliers.com
852 2822 0798 joe.cheng@colliers.com
Millennium City 2 378 Kwun Tong Road
> Approx. area: 1,900 - 2,400 sq ft gross > Direct linkage to Ngau Tau Kok MTR Station > Excellent property management
Patrick Mak (E-187858)
Steve Ng (E-188091)
Ella Lai (S-342139)
852 2822 0752 patrick.mak@colliers.com
852 2822 0753 steve.ng@colliers.com
852 2822 758 ella.lai@colliers.com
Page 20 | Colliers International | Moving Times
Sole Agent
579 Nathan Road 579 Nathan Road > > > >
Close to MTR Station Convenient, supported by many modes of transportation Supported by many F&B and banking facilities Shopping arcades within walking distance
Mong Kok Kowloon Bay
kowloo n
Jonathan Chan (S-467510)
Otto Hui (S-467500)
852 2822 0762 jonathan.chan@colliers.com
852 2822 0761 otto.hui@colliers.com
Joint Sole Agent
Nanyang Plaza 57 Hung To Road > > > >
Approx. area: 1,700 - 7,803 sq ft gross High quality industrial / office building 7 minutes walking distance to Kwun Tong MTR Station Supported by many F&B and banking facilities nearby
Murphy Chung (E-216220)
Jonathan Chan (S-467510)
852 2822 0755 murphy.chung@colliers.com
852 2822 0762 jonathan.chan@colliers.com
Kwun Tong Kowloon Bay
Floor plan (For identification purpose only)
Colliers International | Moving Times | Page 21
Kwai chung
kowloo n
Hot Listing
The Octagon 6 Sha Tsui Road
The above images shown represent an artist’s impression of the development concerned only, they are not photographs taken on-site. They are not drawn to scale and/or may have been edited and processed with computerised imaging techniques. The above images regarding the environment, views, and interior designs of the development concerned do not represent the actual environment, views and final interior designs. The developer also advises relevant persons to conduct an on-site visit for a better understanding of the development site, its surrounding environment and the public facilities nearby.
> > > >
Pure Grade-A office tower with approx. 400,000 sq ft gross Target completion in 4Q 2014 State-of-the-art specifications Practical floor plate of approx. 15,000 sq ft gross with 2,850 mm clear headroom and 150 mm raised floor > Elegant lobby with all-weather drop-off and the Sky Garden > Generous parking facilities and shuttle services to MTR station provided > An en-bloc ownership by a renowned developer K. Wah Group
Murphy Chung (E-216220)
Joe Cheng (E-225818)
852 2822 0755 murphy.chung@colliers.com
852 2822 0798 joe.cheng@colliers.com
Page 22 | Colliers International | Moving Times
kowloo n
Kowloon Bay
Hot Listing
One Kowloon 1 Wang Yuen Street
Floor plan (For identification purpose only)
> > > >
Approx. area: 23,000 sq ft gross Grade A office specification Excellent tenancy mix within the portfolio Next to large shopping mall “MegaBox�
Floor plan (For identification purpose only)
Fiona Ngan (E-197789)
Steve Ng (E-188091)
852 2822 0751 fiona.ngan@colliers.com
852 2822 0753 steve.ng@colliers.com Colliers International | Moving Times | Page 23
kwai chung
kowloo n
Hot Listing
Kowloon Commerce Centre Tower 2 51 Kwai Cheong Road
kwun tong
> Approx. area: 13,000 - 52,600 sq ft gross > The first green office building in Hong Kong registered under LEED certification > Covered bridge directly linked to the platform of Kwai Hing MTR Station > Good tenancy mix in the building portfolio > Large typical floor plate
Ben Fong (S-086602)
Murphy Chung (E-216220)
852 2822 0799 ben.fong@colliers.com
852 2822 0755 murphy.chung@colliers.com
Hot Listing
AXA Tower / AIA Kowloon Tower 100 How Ming Street > > > > >
Approx. area: 4,000 - 27,000 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)
Ivan Wong (E-241525)
852 2822 0751 fiona.ngan@colliers.com
852 2822 0756 ivan.wong@colliers.com
Page 24 | Colliers International | Moving Times
Hot Listings
Manhattan Place 23 Wang Tai Road > > > > >
Approx. area: 12,500 - 16,850 sq ft gross Panoramic seaview Next to the large shopping mall “MegaBox” Grade A office building in Kowloon Bay Good tenancy mix in its portfolio
Ivan Wong (E-241525)
Steve Ng (E-188091)
852 2822 0756 ivan.wong@colliers.com
852 2822 0753 steve.ng@colliers.com
kowloon Kowloon bay Bay
kowloo n
YHC Tower 1 Sheung Yuet Road > > > >
Approx. area: 12,263 sq ft gross Brand new Grade A office in Kowloon Bay Panoramic seaview Next to the shopping mall ”MegaBox” & ”E-Max”
Ivan Wong (E-241525)
Joe Cheng (E-225818)
852 2822 0756 ivan.wong@colliers.com
852 2822 0798 joe.cheng@colliers.com
Colliers International | Moving Times | Page 25
Kowloon East
kowloo n
Hot Listings Listing 9 Chong Yip Street
9 Chong Yip Street, Kwun Tong
APEC Plaza
49 Hoi Yuen Road, Kwun Tong
Approx. Area (sq ft) 1,400 - 3,000
Approx. Area (sq ft) 800 - 9,000
Estimated Effective Rent (HKD psf) $19.5 - $21
Estimated Effective Rent (HKD psf) $14 - $16
C-Bons International Center 108 Wai Yip Street, Kwun Tong
Lu Plaza
2 Wing Yip Street, Kwun Tong
Approx. Area (sq ft) 1,300 - 17,300
Approx. Area (sq ft) 1,800 - 23,000
Estimated Effective Rent (HKD psf) $28- $31
Estimated Effective Rent (HKD psf) $16- $18
Manulife Financial Centre 223-231 Wai Yip Street, Kwun Tong
Millennium City 1
388 Kwun Tong Road, Kwun Tong
Approx. Area (sq ft) 1,100 - 12,000
Approx. Area (sq ft) 800 - 21,500
Estimated Effective Rent (HKD psf) $26 - $29
Estimated Effective Rent (HKD psf) $27 - $30
Millennium City 2
378 Kwun Tong Road, Kwun Tong
Millennium City 5
418 Kwun Tong Road, Kwun Tong
Approx. Area (sq ft) 700 - 4,000
Approx. Area (sq ft) 3,300 - 18,000
Estimated Effective Rent (HKD psf) $26 - $27
Estimated Effective Rent (HKD psf) $33 - $36
Estimated effective rent (HK$ 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 26 | Colliers International | Moving Times
Hot Listings One Harbour Square 181 Hoi Bun Road, Kwun Tong
Pioneer Place
213 Wai Yip Street, Kwun Tong
Approx. Area (sq ft) 17,000 - 18,000
Approx. Area (sq ft) 20,000 - 27,000
Estimated Effective Rent (HKD psf) $28 - $30
Estimated Effective Rent (HKD psf) $22 - $25
Rykadan Capital Tower 135 Hoi Bun Road, Kwun Tong
South Asia Commercial Centre 64 Tsun Yip Street, Kwun Tong
Approx. Area (sq ft) 12,000
Approx. Area (sq ft) 1,000 - 10,300
Estimated Effective Rent (HKD psf) $25+
Estimated Effective Rent (HKD psf) Subject to offer
Enterprise Square 1
9 Sheung Yuet Road, Kowloon Bay
Enterprise Square 3
39 Wang Chiu Road, Kowloon Bay
Approx. Area (sq ft) 3,000 - 28,000
Approx. Area (sq ft) 2,200 - 16,100
Estimated Effective Rent (HKD psf) $19.5 - $20
Estimated Effective Rent (HKD psf) $40
Exchange Tower
33 Wang Chiu Road, Kowloon Bay
kowloon EAST
kowloo n
Skyline Tower
39 Wang Kwong Road, Kowloon Bay
Approx. Area (sq ft) 600 - 27,500
Approx. Area (sq ft) 600 - 7,500
Estimated Effective Rent (HKD psf) $27 - $30
Estimated Effective Rent (HKD psf) $22 - $25
Estimated effective rent (HK$ 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 27
tSIM sHA tSUI
kowloo n
Hot Listings China Hong Kong City 33 Canton Road
China Minmetals Tower 79 Chatham Road South
Approx. Area (sq ft) 1,000 - 10,000
Approx. Area (sq ft) 5,700
Estimated Effective Rent (HKD psf) $28 - $31
Estimated Effective Rent (HKD psf) $26 - $27
Chinachem Golden Plaza 77 Mody Road
Hong Kong Pacific Centre 28 Hankow Road
Approx. Area (sq ft) 1,100 - 20,000
Approx. Area (sq ft) 980
Estimated Effective Rent (HKD psf) $28 - $29
Estimated Effective Rent (HKD psf) $34 - $36
Miramar Tower
The Gateway Tower 1
1-23 Kimberley Road
25 Canton Road Approx. Area (sq ft) 2,200 - 14,000
Approx. Area (sq ft) 1,100 - 7,500
Estimated Effective Rent (HKD psf) $40 - $45
Estimated Effective Rent (HKD psf) $38 - $48
The Gateway Tower 2 25 Canton Road
The Gateway Tower 6 9 Canton Road
Approx. Area (sq ft) 1,000 - 6,000
Approx. Area (sq ft) 1,400 - 25,000
Estimated Effective Rent (HKD psf) $39 - $54
Estimated Effective Rent (HKD psf) $48 - $57
Estimated effective rent (HK$ 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 28 | Colliers International | Moving Times
Hot Listings 909 Cheung Sha Wan
Billion Plaza II
909 Cheung Sha Wan Road, Cheung Sha Wan
8 Cheung Yue Street, Cheung Sha Wan
Approx. Area (sq ft) 1,700 - 9,300
Approx. Area (sq ft) 4,935 up (L)
Estimated Effective Rent (HKD psf) $24 - $26
Estimated Effective Rent (HKD psf) $45 - $65
Cheung Sha Wan Plaza
Laford Centre
Approx. Area (sq ft) 1,100 - 7,700
Approx. Area (sq ft) 830 - 8,700
Estimated Effective Rent (HKD psf) $18 - $20
Estimated Effective Rent (HKD psf) $16 - $18
Saxon Tower
ATL Logistic Centre
Approx. Area (sq ft) 1,800 - 8,000
Approx. Area (sq ft) 5,000 -40,000
Estimated Effective Rent (HKD psf) $21 - $24
Estimated Effective Rent (HKD psf) $12 - $13
Ever Gain Plaza
KC100
Approx. Area (sq ft) 3,700 - 22,500
Approx. Area (sq ft) 24,000
Estimated Effective Rent (HKD psf) $16.50 - $18.50
Estimated Effective Rent (HKD psf) $26 - $28
Manhattan Centre
Metroplaza Tower 1
Approx. Area (sq ft) 1,200 - 15,000
Approx. Area (sq ft) 1,400 - 6,100
Estimated Effective Rent (HKD psf) $15 - $16
Estimated Effective Rent (HKD psf) $29 - $30
833 Cheung Sha Wan Road, Cheung Sha Wan
7 Cheung Shun Street, Cheung Sha Wan
88 Container Port Road, Kwai Chung
8 Kwai Cheong Road, Kwai Chung
kowloon West
kowloo n
838 Lai Chi Kok Road, Cheung Sha Wan
Container Terminal 3, Kwai Chung
100 Kwai Cheong Road , Kwai Chung
223 Hing Fong Road, Kwai Chung
Estimated effective rent (HK$ 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 29
others
kowloo n
Hot Listings Tower Jordan
6 Bowring Street, Tsim Sha Tsui
Langham Place
8 Argyle Street, Mong Kok
Approx. Area (sq ft) 980
Approx. Area (sq ft) 1,556 - 17,398
Estimated Effective Rent (HKD psf) $34 - $36
Estimated Effective Rent (HKD psf) $35 - $40
Park-In Commercial Centre 56 Dundas Street, Mong Kok
Skyway House
3 Sham Mong Road, Tai Kok Tsui
Approx. Area (sq ft) 500 - 10,000
Approx. Area (sq ft) 3,800 - 11,000
Estimated Effective Rent (HKD psf) $26 - $28
Estimated Effective Rent (HKD psf) $16 - $19
Delta House
Grand Central Plaza
3 On Yiu Street, Sha Tin
138 Sha Tin Rural Committee Road, Shatin Approx. Area (sq ft) 4,800 - 7,200
Approx. Area (sq ft) 1,000 - 7,600
Estimated Effective Rent (HKD psf) $18
Estimated Effective Rent (HKD psf) $30 - $32
HK Science Park Phase III Pak Shek Kok, New Territories
Landmark North
39 Lung Sum Avenue, Sheung Shui
Approx. Area (sq ft) 33,610
Approx. Area (sq ft) 700 - 8,200
Estimated Effective Rent (HKD psf) $18
Estimated Effective Rent (HKD psf) $23 - $25
Estimated effective rent (HK$ 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 30 | Colliers International | Moving Times
kowloo n
Recent Leasing Transactions TSIM SHA TSUI Building
Approx. Area (sq ft)
Miramar Tower
38,000 (G)
The Gateway Tower 1
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
Finance
$32.00
15,628 (G)
Renewal and Expansion Renewal
Sourcing
$42.70
China Hong Kong City Tower 5
2,803 (G)
New Letting
IT & T
$26.00
Empire Centre
3,016 (G)
New Letting
Others
$36.40
Wharf T & T Centre
8,724 (G)
Renewal
Others
$34.50
KOWLOON EAST Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
KITEC
92,630 (G)
New Letting
Government
$18.00
Octa Tower
46,200 (G)
New Letting
Others
$20.00
Manulife Financial Centre Tower A
15,129 (G)
Renewal
Others
$22.10
Millennium City 1 SC Tower
9,584 (G)
Renewal
Consumer Products
$27.20
Manhattan Place
6,991 (L)
Renewal
Shipping / Logistic
$28.00
KOWLOON WESt Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
9 Wing Hong Street
11,871 (G)
New Letting
Others
$21.50
Cheung Sha Wan Plaza 2
11,384 (G)
Renewal
Others
$20.00
Kowloon Commerce Centre Tower 1
9,966 (G)
Renewal
IT & T
$29.00
909 Cheung Sha Wan Road
9,349 (G)
New Letting
Others
$27.00
Laford Centre
7,881 (G)
New Letting
Others
$14.85
Laws Commercial Plaza
7,881 (G)
New Letting
Others
$23.00
Mong Kok Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
Langham Place
17,398 (G)
New Letting
Consumer Products
$37.00
Grand Century Place Tower 2
11,552 (G)
Renewal
IT & T
$34.80
hung hom Building
The Metropolis Tower
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
5,409 (G)
New Letting
Others
$38.00
Shatin Building
Grand Central Plaza Tower 2 Delta House (G) = Gross
(L) = Lettable
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
9,338 (G) 4,854 (G)
Renewal New Letting
IT & T Others
$30.00 $20.00
(N) = Net
Colliers International | Moving Times | Page 31
Colliers International | marke t overview
Hong Kong’s
Heart Beat
Oversupply in Kowloon East means price slide is unavoidable The traditional sub-markets of Hong Kong Island remained quiet in 1Q 2014. Barring individual cases of mild expansion, most activities were small transactions of 5,000 sq ft or below from new startups, financial companies and business centres. Tenants’ requirements in the Kowloon market were larger but generally capped at 10,000 sq ft.
Hong Kong Grade A Office Vacancy 16%
Vacancy Rate
12% 10%
6%
Long-term average 6.1%
4% 2%
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
0%
Source: Colliers
Colliers View Given the projection of limited new completions and sustained low vacancy (i.e. 4.9%) in the secondary market, most tenants are expected to remain in situ upon lease expiry in 2014. They will likely look at options to make their offices more cost effective, including space planning and remodeling. Some China based companies are the exception, as they continue to expand outside of China using Hong Kong as their first step. The latest example was China Merchants Securities, who currently occupies 25,800 sq ft at One Exchange Square, recently committing to an additional floor (i.e. 14,000 sq ft) in Tower 2 of the same building.
Page 32 | Colliers International | Moving Times
The average Grade A office rent was virtually unchanged at HK$64 per sq ft per month in 1Q 2014. Central rents remained firm despite the fact that several Grade A buildings still have significant space available. Kowloon East started showing signs of rental decline due to competition from strata-title landlords who opted to lease their units in view of a weakened sales market.
Colliers View
14%
8%
Intensifying rental competition
Office rentals in 2014 are going to decrease slightly. Central is likely to soften more than surrounding areas as individual landlords adopt a more aggressive pricing strategy. Other than that, most sub-markets on Hong Kong Island will see nominal 1-2% growth. Tsim Sha Tsui and Kowloon East are predicted to undergo distinct rental reductions. The key reason is rental affordability as a result of the uncertainty of the external business environment. In Kowloon East, it is more of a supply issue as rental competition is further intensified by the introduction of more stock from industrial revitalisation projects.
9%
kowloon east rental forecast
Colliers International | marke t overview
Yield rates normalisation
Colliers View The average cap rate was flat at 2.9% in 1Q 2014. However, the change of rental expectations, the imminent threat of increasing interest rates and the general rise of funding costs have prompted more prospective office buyers to demand a wider yield spread. The result will be gradual restoration of the current ultra-low yield rates back to its long-term average of 4.6%; similar to the spikes which occurred in 2005 and 2008. The full spike may not materialise in 2014, however an increase of 25 basis points is very likely. As such, it is our view that office prices will see a steeper downward adjustment in the order of 10% in 2014.
Due to expectations of rent softening, and the increase in transaction costs arising from double stamp duty, the overall volume of the investment sales market activity plummeted 39% to HK$3.4 billion in 1Q 2014. With the exception of government land sales, there were no whole-block transactions concluded during the period. Several strata-title sales occurred as smaller owners were more flexible with pricing.
Hong Kong Grade A Office Yield 9.0% 8.0%
Play safe
Yield (% per annum)
7.0% 6.0%
Long-term average 4.6%
5.0% 4.0% 3.0% 2.0% 1.0%
Jan-99 Jul-99 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
0.0%
Source: HKSAR Government
Further to the acquisition of a commercial site in Kowloon Bay by Swire Properties in November 2013, Mapletree, a real estate investment trust, ventured into the market by acquiring a commercial site in Kwun Tong for HK$3.77 billion (an accommodation value of HK$5,708 per sq ft). The deal not only translates into a higher than expected unit price tag but is also a vote of confidence by foreign players.
Colliers View Kowloon East is not a new story, however, many are unaware of the magnitude of its likely impact on the Hong Kong landscape over the next 10 years, as the area is gradually transformed into a commercial hub. What we have seen over the past 8 years is the introduction of new tenants including insurers, financial services and multi-national corporations engaged in wholesale and distribution. The current trend is the broadening of investor profile from traditional property developers to long-term investors and investment funds. Despite the short-term market volatility, the sub-market of Kowloon East, comprising both Kowloon Bay and Kwun Tong, remains appealing to investors who are looking for value-add opportunities on a medium to long-term time frame.
39%
investment sales Market activity
10% office price
Kowloon East office stock
3X
CENTRAL
Colliers International | Moving Times | Page 33
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Office Services - Hong Kong 5701 Central Plaza, 18 Harbour Road Wanchai Hong Kong Tel: 852 2822 0668 Fax: 852 2869 4082 Email: offices.hongkong@colliers.com
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