HONG KONG EDITION
NOVEMBER 2015
Hong Kong Commercial Real Estate at Your Fingertips
PEAK
PEAK
PEAK
TROUGH
TROUGH
TROUGH
OVERALL
HONG KONG
KOWLOON
Where are we now?
New Office Demand Driven by Finance Sector The best of the best
Market outlook
A comprehensive portfolio showcasing premier office leasing opportunities across Hong Kong
Rental rise pick up pace
Divergence in Kowloon
HONG KONG’S
New office demand driven by finance sector
38
36 Hong Kong Island Joint Lead Marketing Agent
5
Sole Agency Appointments
6
Special Listings
9
Hot Listings
10 17
Recent Leasing Transactions
Kowloon
KC100
18
Sole Marketing Agent
18
Sole Agency Appointments Joint Sole Agency Appointments
20 24
Hot Listings
24
Recent Leasing Transactions
36
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). Š2015. All rights reserved.
CENTRAL ADMIRALTY SHEUNG WAN WAN CHAI CAUSEWAY BAY ISLAND EAST WONG CHUK HANG
Hong Kong Island
ASIA ORIENT TOWER 33 LOCKHART ROAD
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WA N C H A I
H O N G KO N G
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JOINT LEAD MARKETING AGENT This 29-storey building offers an excellent business environment built to top class specifications. The magnificent lobby and low-rise facade design is crafted by Mr. Koichiro Ikebuchi, whose impressive track record work includes Empire Hotel Hong Kong and The Westminster Terrace. n From 8,250-42,000 sq ft gross available n Immediate proximity to Admiralty n Car-parking spaces available n Newly renovated facade and lobby (work to commence from Q4 2015)
n Landlord provisions: Full metallic ceiling system & light panels n Rooftop signage rights available (subject to confirmation by the landlord)
Rooftop signage rights
FOR LEASING ENQUIRIES, CALL US NOW Colliers International Agency Limited Suite 5701, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong (Company Licence No. C-006069)
www.colliers.com
Billy Chak 852 2822 0687 | 852 9122 2621 (E-252317)
billy.chak@colliers.com
James Lai 852 2822 0548 | 852 9367 1850 (S-415275)
james.lai@colliers.com
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
HONG KONG ISL AND
WAN CHAI
Sole Agent
Shui On Centre 6-8 Harbour Road > > > > > > >
Approx. Area: 4,728 sq ft gross High zone Full sea view Direct to Lift Lobby Full ceiling system Attractive Effective Rental Package Availability: Immediate
Floor plan (For identification purpose only)
Candise Lai (E-071171) 852 2822 0680 | 852 9882 3381 candise.lai@colliers.com
Jonathan Der (S-453079) 852 2822 0555 | 852 9816 6613 jonathan.der@colliers.com
3 Lockhart Road > > > > > > >
Approx. area: 1,080 - 3,055 sq ft gross Landlord’s provisions: Full ceiling systems Newly renovated premises with sea view Column-free design floorplate Close proximity to hotels Close to public transportation Availability: Immediate
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 | 9100 0307 sam.gourlay@colliers.com
Colliers International | Moving Times | Page 7
WAN CHAI
HONG KONG ISL AND
Sole Agent
China Overseas Building 139 Hennessy Road
> Surrender space (Two Units) > Approx. Area: 2,227 sq ft gross / 1,655 sq ft gross > Located above Wan Chai MTR Station > Modern decoration with Wet Pantry (both units) > Open Plan with 2 Meeting Rooms & 1 Manager Room > Availability: Negotiable
Piers Steward (S-499644) 852 2822 0656 | 852 9430 2147 piers.steward@colliers.com
Candy Fung (S-417780) 852 2822 0582 | 9041 4321 candy.fung@colliers.com
Fully Fitted Seaview Office Harbour Road > > > > >
Surrender space Approx. Area: 5,747 sq ft lettable Possession: Negotiable Sea and Mountain Views 5 Manager Rooms, 1 Conference Room, 1 Meeting Room, Open Plan 36 workstations, Server & Storage Rooms, Wet Pantry > Possession: Negotiable
Ryan Tong (S-322048) 852 2822 0613 | 852 9229 6000 ryan.tong@colliers.com
Page 8 | Colliers International | Moving Times
Michael Nardella (S-313821) 852 2822 0681 | 852 6473 7483 michael.nardella@colliers.com
HONG KONG ISL AND
ADMIRALTY
Sole Agent
United Centre 95 Queensway
> Sub-letting space > Approx. Area: 4,571 sq ft gross > Fitted with 7 Director Rooms > Facing the Central Government Complex with a harbour view > Multinational Bank as Head Lessee > Attractive & Cost Effective Rental Package > Availability: Immdediate
michael.nardella@colliers.com
Billy Ng (S-285378) 852 2822 0558 | 852 9145 8148 billy.ng@colliers.com
Special Listing
Fully Fitted Law Firm Premises in Core Central Queen’s Road Central
CENTRAL
Michael Nardella (S-313821) 852 2822 0681 | 852 6473 7483
> Surrender space > High zone > Approx. area: from 8,000 up to whole floor 12,500 sq ft net > Approx. 100% efficiency > Long rent free period will be subsidised > 24-hour zoned central air-conditioning > Direct Central MTR Station access > Connected to the Central walkway network > Availability: To be confirmed
David Wood (S-308367) 852 2822 0694 | 852 9862 1573 david.wood@colliers.com
Colliers International | Moving Times | Page 9
CENTRAL / ADMIRALTY
HONG KONG ISL AND
Hot Listings Bank of America Tower
8 Wyndham Street
12 Harcourt Road
8 Wyndham Street
Approx. Area (sq ft) 1,793 - 3,586 (G)
Approx. Area (sq ft) 1,400 - 18,000 (G)
Estimated Effective Rent (HKD psf) $60 - $65
Estimated Effective Rent (HKD psf) $60 - $70
Cheung Kong Center 2 Queen’s Road Central
China Building
29 Queen’s Road Central Approx. Area (sq ft) 4,602 - 22,006 (L)
Approx. Area (sq ft) 2,050 - 5,279 (G)
Estimated Effective Rent (HKD psf) $120 - $130
Estimated Effective Rent (HKD psf) $65 - $70
Citibank Plaza - Citibank Tower 3 Garden Road
Citibank Plaza - ICBC Tower 3 Garden Road
Approx. Area (sq ft) 1,282 - 30,494 (L)
Approx. Area (sq ft) 954 - 7,530 (L)
Estimated Effective Rent (HKD psf) $100 - $110
Estimated Effective Rent (HKD psf) $100 - $110
Entertainment Building 30 Queen’s Road Central
Hutchison House 10 Harcourt Road
Approx. Area (sq ft) 2,210 - 4,858 (L)
Approx. Area (sq ft) 650 - 1,904 (G)
Estimated Effective Rent (HKD psf) $80 - $82
Estimated Effective Rent (HKD psf) $65 - $70
Estimated effective rent (HK$ 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 Kinwick Centre
Lippo Centre
32 Hollywood Road
89 Queensway Approx. Area (sq ft) 1,088 - 3,489 (G)
Approx. Area (sq ft) 829 - 9,784 (G)
Estimated Effective Rent (HKD psf) $40 - $42
Estimated Effective Rent (HKD psf) $50 - $60
New World Tower
CENTRAL / ADMIRALTY
HONG KONG ISL AND
Nexxus Building
16-18 Queen’s Road Centra/
77 Des Voeux Road Central Approx. Area (sq ft) 957 - 4,920 (G)
Approx. Area (sq ft) 8,089 - 18,256 (L)
Estimated Effective Rent (HKD psf) $65 - $68
Estimated Effective Rent (HKD psf) $68 - $72
Printing House
Prosperity Tower
6 Duddell Street
39 Queen’s Road Central Approx. Area (sq ft) 740 - 3,530 (G)
Approx. Area (sq ft) 3,600 - 5,442 (G)
Estimated Effective Rent (HKD psf) $60 - $65
Estimated Effective Rent (HKD psf) $70 - $75
Shanghai Commercial Bank Tower 12 Queen’s Road Central
Approx. Area (sq ft) 4,236 up (L) Estimated Effective Rent $75 - $85
Two International Finance Centre 8 Finance Street
Approx. Area (sq ft) 1,638 - 23,638 (L) Estimated Effective Rent (HKD psf)
$125 - $140
Estimated effective rent (HK$ 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 FWD Financial Centre 308 Des Voeux Road Central
Grand Millennium Plaza, COSCO Tower 183 Queen’s Road Central
Approx. Area (sq ft) 890 - 6,910 (G)
Approx. Area (sq ft) 1,225 - 12,000 (G)
Estimated Effective Rent (HKD psf) $38 - $40
Estimated Effective Rent (HKD psf) $50 - $60
One8One Queen’s Road Central 181 Queen’s Road Central
Shun Tak Centre
200 Connaught Road Central
Approx. Area (sq ft) 2,292 - 4,855 (G)
Approx. Area (sq ft) 1,130 - 10,548 (G)
Estimated Effective Rent (HKD psf) $46 - $53
Estimated Effective Rent (HKD psf) $50 - $65
The Center
The Wellington
99 Queen’s Road Central
198 Wellington Street Approx. Area (sq ft) 2,224 - 13,509 (G)
Approx. Area (sq ft) 3,587 up (G)
Estimated Effective Rent (HKD psf) $55 - $70
Estimated Effective Rent (HKD psf) $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
Page 12 | Colliers International | Moving Times
Hot Listings Central Plaza
China Resources Building
18 Harbour Road
26 Harbour Road
Approx. Area (sq ft) 814 - 7,032 (L)
Approx. Area (sq ft) 2,651 - 9,233 (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 - 3,753 (G)
Approx. Area (sq ft) 1,222 - 3,567 (L)
Estimated Effective Rent (HKD psf) $52 - $70
Estimated Effective Rent (HKD psf) $47 - $65
Harcourt House
Hopewell Centre
Approx. Area (sq ft) 590 - 6,000 (G)
Approx. Area (sq ft) 966 - 47,046 (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) 1,846 - 4,728 (G)
Approx. Area (sq ft) 568 - 14,000 (L)
Estimated Effective Rent (HKD psf) $45 - $55
Estimated Effective Rent (HKD psf)
Sunlight Tower
Tai Tung Building
248 Queen’s Road East
8 Fleming Road
Approx. Area (sq ft) 738 - 10,589 (G)
Approx. Area (sq ft) 1,218 - 6,862 (G)
Estimated Effective Rent (HKD psf) $36 - $43
Estimated Effective Rent (HKD psf) $37 - $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 Lee Garden One
Midtown - Soundwill Plaza II
33 Hysan Avenue
1-29 Tung Lung Street Approx. Area (sq ft) 3,350 - 15,000 (L)
Approx. Area (sq ft) 2,877 - 8,682 (G)
Estimated Effective Rent (HKD psf) $62 - $65
Estimated Effective Rent (HKD psf) $43 - $45
Sino Plaza
Times Square
255-257 Gloucester Road
1 Matheson Street Approx. Area (sq ft) 1,538 - 11,538 (G)
Approx. Area (sq ft) 1,199 - 11,026 (G)
Estimated Effective Rent (HKD psf) $40 - $45
Estimated Effective Rent (HKD psf) $49 - $53
Top Glory Tower
Tower 535
262 Gloucester Road
535 Jaffe Road Approx. Area (sq ft) 1,417 - 6,352 (G)
Approx. Area (sq ft) 11,712 up (G)
Estimated Effective Rent (HKD psf) $40 - $46
Estimated Effective Rent (HKD psf) $50 - $60
Windsor House, ACE Tower 311 Gloucester Road
World Trade Centre 280 Gloucester Road
Approx. Area (sq ft) 1,661 - 7,492 (G)
Approx. Area (sq ft) 1,640 - 3,070 (G)
Estimated Effective Rent (HKD psf) $38 - $42
Estimated Effective Rent (HKD psf) $50 - $52
Estimated effective rent (HK$ 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 14 | Colliers International | Moving Times
Hot Listings @Convoy
148 Electric Road
169 Electric Road
148 Electric Road Approx. Area (sq ft) 3,038 - 20,750 (G)
Approx. Area (sq ft) 1,678 - 2,210 (G)
Estimated Effective Rent (HKD psf) $29 - $33
Estimated Effective Rent (HKD psf) $24 - $26
ISLAND EAST
HONG KONG ISL AND
AIA Tower
1063 King’s Road
183 Electric Road
1063 King’s Road
Approx. Area (sq ft) 1,731 - 11,000 (L)
Approx. Area (sq ft) 1,860 - 24,982 (L)
Estimated Effective Rent (HKD psf) $38 up
Estimated Effective Rent (HKD psf) $45 - $47
Citicorp Centre
Johnson Place
18 Whitfield Road
14-16 Lee Chung Street Approx. Area (sq ft) 3,200 - 12,676 (G)
Approx. Area (sq ft) 12,000 up (G)
Estimated Effective Rent (HKD psf) $29
Estimated Effective Rent (HKD psf) $17 - $18
Prosperity Millennia Plaza 663 King’s Road
Best Building in Island East Island East
Approx. Area (sq ft) 765 - 2,185 (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)
SHEUNG WAN / CENTRAL / ADMIRALTY 100 Que en's Road Central
6,700 (G)
Renewal
I.T.
$77.00
33 Des Voeux Road Central
4,700 (G)
New Lease
Design / Advertising
$60.00
33 Des Voeux Road Central
3,900 (G)
New Lease
Banking & Finance
$59.00
13,600 (L)
New Lease
Real Estate
$115.50
5,900 (L)
New Lease
Banking & Finance
$90.00
AIA Central Bank of China Tower China Building
9,100 (G)
Rent Review
Banking & Finance
$72.00
Grand Millennium Plaza, COSCO Tower
19,700 (G)
New Lease
Banking & Finance
$51.00
Grand Millennium Plaza, COSCO Tower
1,100 (G)
New Lease
Banking & Finance
$54.00
Infinitus Plaza
1,700 (G)
Renewal
Legal
$49.00
LHT Tower
2,100 (L)
New Lease
Banking & Finance
$88.00
Renewal
Legal
$54.00
Lippo Centre - Tower 1
12,600 (G)
Lippo Centre - Tower 2
1,800 (G)
New Lease
Banking & Finance
$62.00
Nan Fung Tower
8,900 (L)
New Lease
Banking & Finance
$52.00
Nexxus Building
3,800 (L)
New Lease
Banking & Finance
$72.00
The Wellington
6,900 (G)
New Lease
Management Consulting
$43.50
United Centre
14,300 (G)
New Lease
Legal
$47.65
3,500 (G)
Renewal
Management Consulting
$75.00
3 Lockhart Road
3,100 (G)
New Lease
I.T.
$34.00
Central Plaza
3,900 (L)
Renewal
Banking & Finance
$60.00
Central Plaza
27,200 (L)
Renewal
Banking & Finance
$52.00
Fortis Tower
3,200 (G)
New Lease
Management Consulting
$38.00
Great Eagle Centre
5,800 (L)
Renewal
I.T.
$62.00
Great Eagle Centre
9,300 (L)
Renewal
I.T.
$62.00
Great Eagle Centre
24,800 (L)
Renewal
I.T.
$67.00
World-Wide House WA N CH A I / C AUS E WAY BAY
Harcourt House
4,100 (G)
New Lease
Transportation & Logistics
$43.00
Luk Kwok Centre
6,900 (L)
New Lease
Chemicals
$55.00
Sino Plaza
3,000 (G)
Renewal
Consulate General
$44.50
World Trade Centre
6,900 (G)
New Lease
Beauty / Hair / Fitness
$55.00
World Trade Centre
12,800 (G)
New Lease
Transportation & Logistics
$53.50
1063 King's Road
11,000 (L)
New Lease
Insurance
$41.00
633 King's Road
30,100 (G)
New Lease
Insurance
$32.00
633 King's Road
10,000 (G)
New Lease
Medical & Health
$27.50
AIA Tower
5,500 (L)
New Lease
Government
$35.00
AIA Tower
4,300 (L)
New Lease
Government
$44.00
Citicorp Centre
14,100 (G)
New Lease
Jewellery
$31.00
Citicorp Centre
14,100 (G)
Renewal
Insurance
$31.00
Global Trade Square
9,800 (G)
New Lease
I.T.
$20.00
Global Trade Square
9,700 (G)
New Lease
Beauty / Hair / Fitness
$23.00
IS L AND E AST
WO NG CH U K H A N G
(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
KWAI CHUNG
KOWLOO N
Sole Marketing Agent
Page 18 | Colliers International | Moving Times
KOWLOO N
KC100
100 Kwai Cheong Road > > > > >
Approx. area: 24,000 sq ft gross Immdiate 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
Colliers International | Moving Times | Page 19
KWUN TONG
KOWLOO N
Sole Agent
Page 20 | Colliers International | Moving Times
KOWLOO N
The Rays
71 Hung To Road
High Zone Plan (For identification purpose only)
> Approx. area: 7,285 - 10, 500 sq ft gross > Immediate available > One of the newest office building in Kowloon East and part of government’s CBD2 initiative > 8 minutes walking distance to Kwun Tong MTR Station
Low Zone Plan (For identification purpose only)
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Colliers International | Moving Times | Page 21
KWUN TONG
KOWLOO N
Joint Sole Agent
Manulife Financial Centre 223-231 Wai Yip Street > > > > >
Approx. area: 31,000 sq ft gross 180-degree harbour views Consecutive floors available in Q2 2016 Strategically located in the heart of Kowloon East Superb dining and leisure amenities
Floor plan (For identification purpose only)
Sam Li (E-232513) 852 2822 0780 sam.li@colliers.com
Page 22 | Colliers International | Moving Times
KOWLOO N
Colliers International | Moving Times | Page 23
KWUN TONG
KOWLOO N
Joint Sole Agent
Nanyang Plaza 57 Hung To Road > > > >
Approx. area: 1,000 - 6,000 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
Steve Ng (E-188091) 852 2822 0753
TSIM SHA TSUI
steve.ng@colliers.com
Jonathan Chan (S-467510) 852 2822 0762
jonathan.chan@colliers.com
Hot Listing
8 Observatory Road 8 Observatory Road > > > > >
Typical floor area: 9,500 sq ft gross approx. Immdiate available Prime location in Tsim Sha Tsui Surrounded by various Hotel and F&B facilities 6 minutes walking distance to Tsim Sha Tsui East MTR Station
Patrick Mak (E-187858) 852 2822 0752
patrick.mak@colliers.com Page 24 | Colliers International | Moving Times
Rose Tam (S-496380) 852 2822 0764
rose.tam@colliers.com
KOWLOO N
KOWLOON BAY
Hot Listings
Enterprise Square 5 38 Wang Chiu Road > > > >
Typical floor area: 15,960 - 18,590 sq ft gross Panoramic Seaview Consecutive floors available in Q4 2015 - Q1 2016 On top of shopping mall, Megabox
Ivan Wong (E-241525) 852 2822 0756
ivan.wong@colliers.com
Wang Cheung (E-242098) 852 2822 0757
wang.cheung@colliers.com
Skyline Tower 39 Wang Kwong Road > > > >
Approx. area: 700 – 29,000 sq ft gross Competitive reantal package Efficient floorplate Good tenancy mix within the portfolio
Patrick Mak (E-187858) 852 2822 0752
patrick.mak@colliers.com
Wang Cheung (E-242098) 852 2822 0757
wang.cheung@colliers.com Colliers International | Moving Times | Page 25
KOWLOON BAY
KOWLOO N
Hot Listing
One Kowloon 1 Wang Yuen Street > > > >
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) 852 2822 0751
fiona.ngan@colliers.com
Steve Ng (E-188091) 852 2822 0753
steve.ng@colliers.com
Manhattan Place 23 Wang Tai Road > > > > >
Approx. area: 19,550 sq ft lettable 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) 852 2822 0756
ivan.wong@colliers.com Page 26 | Colliers International | Moving Times
Ella Lai (S-342139) 852 2822 0758 ella.lai@colliers.com
Hot Listings
AXA Tower / AIA Kowloon Tower 102 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
Patrick Mak (E-187858) 852 2822 0752
patrick.mak@colliers.com
KWUN TONG KOWLOON BAY
KOWLOO N
Ivan Wong (E-241525) 852 2822 0756
ivan.wong@colliers.com
KOHO
73-75 Hung To Road > Approx. area: 6,700 - 24,545 sq ft gross > Revitalised office building > 7 minutes walking distance to Kwun Tong MTR Station
Floor plan (For identification purpose only)
Ivan Wong (E-241525) 852 2822 0756
ivan.wong@colliers.com
Wang Cheung (E-242098) 852 2822 0757
wang.cheung@colliers.com Colliers International | Moving Times | Page 27
KWAI CHUNG
KOWLOO N
Hot Listings
Metroplaza Tower 1 223 Hing Fong Road > > > > >
Approx. area: 900 - 15,000 sq ft gross Multiple whole floors available Direct bridge linkage to Kwai Fong MTR Station In-house shoping centre Open view
Steve Ng (E-188091) 852 2822 0753
MONG KOK
steve.ng@colliers.com
Rose Tam (S-496380)
852 2822 0764 rose.tam@colliers.com
Hot Listing
Langham Place 8 Argyle Street > > > >
Approx. area 1,600 - 12,000 sq ft gross Close to MTR Station and bus terminus On top of a large shopping mall Near to Langham Place Hotel
Patrick Mak (E-187858) 852 2822 0752
patrick.mak@colliers.com
Page 28 | Colliers International | Moving Times
Steve Ng (E-188091) 852 2822 0753
steve.ng@colliers.com
KOWLOO N
CHEUNG SHA WAN KOWLOON BAY
Hot Listing
9 Wing Hong Street > Approx. area: 850 - 12,000 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: 1,000 - 15,000 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
Simon Yu (S-414452) 852 2822 0759
simon.yu@colliers.com Colliers International | Moving Times | Page 29
HUNG HOM
Hot Listings
The Harbourfront 18-22 Tak Fung Street > > > >
Typical floor area: 23,000 sq ft gross approx. Panoramic habour view Adjacent to Hung Hom Ferry Piers and bus terminus Next to a 5-star hotel and many restaurants & banks
Steve Ng (E-188091) 852 2822 0753
KWAI CHUNG
steve.ng@colliers.com
Simon Yu (S-414452) 852 2822 0759
simon.yu@colliers.com
Hot Listing
Ever Gain Plaza 88 Container Port Road > > > >
Approx. area: 1,700 - 12,000 sq ft gross Immediately available 6-8 minutes walking distance to Kwai Fong MTR Station Good tenancy mix within the portfolio
Murphy Chung (E-216220) 852 2822 0755
murphy.chung@colliers.com Page 30 | Colliers International | Moving Times
Rose Tam (S-496380)
852 2822 0764 rose.tam@colliers.com
Hot Listings China Hong Kong City 33 Canton Road
Empire Centre 68 Mody Road
Approx. Area (sq ft) 718 - 10,500
Approx. Area (sq ft) 1,300 - 7,000
Estimated Effective Rent (HKD psf) $29 - $33
Estimated Effective Rent (HKD psf) $39 - $42
Energy Plaza
TSIM SHA TSUI KOWLOON BAY
KOWLOO N
Miramar Tower
92 Granville Road
1-23 Kimberley Road Approx. Area (sq ft) 6,000
Approx. Area (sq ft) 2,500 - 12,000
Estimated Effective Rent (HKD psf) $33 - $34
Estimated Effective Rent (HKD psf) $45 - $54
Ocean Centre
The Gateway Tower 1
5 Canton Road
25 Canton Road Approx. Area (sq ft) 700 - 4,000
Approx. Area (sq ft) 2,000 - 18,000
Estimated Effective Rent (HKD psf) $37 - $42
Estimated Effective Rent (HKD psf) $40 - $48
The Gateway Tower 2 25 Canton Road
The Gateway Tower 6 9 Canton Road
Approx. Area (sq ft) 1,000 - 18,000
Approx. Area (sq ft) 2,000 - 8,000
Estimated Effective Rent (HKD psf) $40 - $50
Estimated Effective Rent (HKD psf) $45 - $57
Estimated effective rent (HK$ 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
Colliers International | Moving Times | Page 31
KOWLOON EAST
KOWLOO N
Hot Listings Listing Kin Sang Commercial Centre 49 King Yip Street, Kwun Tong
Kwun Tong View
410 Kwun Tong Road, Kwun Tong
Approx. Area (sq ft) 700 - 6,300
Approx. Area (sq ft) 1,200 – 6,700
Estimated Effective Rent (HKD psf) $20 - $25
Estimated Effective Rent (HKD psf) $28 - $30
Millennium City 1
388 Kwun Tong Road, Kwun Tong
Millennium City 2
378 Kwun Tong Road, Kwun Tong
Approx. Area (sq ft) 850 - 3,400
Approx. Area (sq ft) 1,000 - 11,000
Estimated Effective Rent (HKD psf) $29 - $32
Estimated Effective Rent (HKD psf) $26 - $28
Lu Plaza
Linkchart Centre
2-4 Wing Yip Street, Kwun Tong
2 Tai Yip Street, Kwun Tong Approx. Area (sq ft) 4,263
Approx. Area (sq ft) 2,000 - 23,000
Estimated Effective Rent (HKD psf) $20 - $22
Estimated Effective Rent (HKD psf) $16 - $19
Octa Tower
8 Lam Chak Street, Kwun Tong
Pioneer Place
213 Wai Yip Street, Kwun Tong
Approx. Area (sq ft) 17,000 - 23,800
Approx. Area (sq ft) 20,000 - 27,000
Estimated Effective Rent (HKD psf) $20 - $22
Estimated Effective Rent (HKD psf) $21 - $23
Estimated effective rent (HK$ 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 32 | Colliers International | Moving Times
Hot Listings Rykadan Capital Tower 135 Hoi Bun Road, Kwun Tong
South Asia Commercial Centre 64 Tsun Yip Street, Kwun Tong
Approx. Area (sq ft) 3,500 - 12,195
Approx. Area (sq ft) 1,000 - 10,300
Estimated Effective Rent (HKD psf) $21 - $25
Estimated Effective Rent (HKD psf) $21 - $23
SML Tower
165 Hoi Bun Road, Kwun Tong
The Mark
164 Wai Yip Street, Kwun Tong
Approx. Area (sq ft) 8,600 - 12,500
Approx. Area (sq ft) 1,600 3,563
Estimated Effective Rent (HKD psf) $17 - $20
Estimated Effective Rent (HKD psf) $16 - $20
Billion Centre
1 Wang Kwong Road, Kowloon Bay
Center Parc
11 Sheung Yuet Road, Kowloon Bay Approx. Area (sq ft) 17,000 - 33,000
Approx. Area (sq ft) 1,800 - 12,600
Estimated Effective Rent (HKD psf) $20 - $25
Estimated Effective Rent (HKD psf) $22 - $25
Enterprise Square 3
39 Wang Chiu Road, Kowloon Bay
KOWLOON EAST
KOWLOO N
Exchange Tower
33 Wang Chiu Road, Kowloon Bay
Approx. Area (sq ft) 2,200 - 16,100
Approx. Area (sq ft) 600 - 10,000
Estimated Effective Rent (HKD psf) $25 - $29
Estimated Effective Rent (HKD psf) $26 - $30
Estimated effective rent (HK$ 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 33
KOWLOON WEST
KOWLOO N
Hot Listings Billion Plaza II
Laford Centre
Park Building
Approx. Area (sq ft) 2,000 - 11,600
Approx. Area (sq ft) 570 - 9,000
Approx. Area (sq ft) 750 - 3,000
Estimated Effective Rent (HKD psf) $23 - $25
Estimated Effective Rent (HKD psf) $16 - $18
Estimated Effective Rent (HKD psf) $18 - $19
Saxon Tower
The Octagon
Manhattan Centre
Approx. Area (sq ft) 90 - 8,000
Approx. Area (sq ft) 7,000 - 15,000
Approx. Area (sq ft) 8,900 - 15,800
Estimated Effective Rent (HKD psf) $23 - $27
Estimated Effective Rent (HKD psf) $13 - $18
Estimated Effective Rent (HKD psf) $15 - $16
Millennium Trade Centre
Properity Centre
Yoo Hoo Tower
Approx. Area (sq ft) 1,000 - 2,500
Approx. Area (sq ft) 7,500 - 15,000
Approx. Area (sq ft) 1,500 - 8,000
Estimated Effective Rent (HKD psf) $17 - $18
Estimated Effective Rent (HKD psf) $13 - $14
Estimated Effective Rent (HKD psf) $13 - $14
8 Cheung Yue Street, Cheung Sha Wan
838 Lai Chi Kok Road, Cheung Sha Wan
7 Cheung Shun Street, Cheung Sha Wan
56 Kwai Cheong Road, Kwai Chung
6 Sha Tsui Road, Tsuen Wan
77-81 Container Port Road, Kwai Fong
476 Castle Peak Road, Cheung Sha Wan
8 Kwai Cheong Road, Kwai Chung
38-42 Kwai Fung Crescent, Kwai Fong
Estimated effective rent (HK$ 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
Park-In Commercial Centre
56 Dundas Street, Mong Kok
Approx. Area (sq ft) 33,000
Approx. Area (sq ft) 1,200 - 11,000
Approx. Area (sq ft) 660 - 6,700
Estimated Effective Rent (HKD psf) $25 - $26
Estimated Effective Rent (HKD psf) $32 - $37
Estimated Effective Rent (HKD psf) $26 - $30
Grand Century Place
Skyway House
AIA Financial Centre
Approx. Area (sq ft) 1,500 - 10,000
Approx. Area (sq ft) 500 - 7,000
Approx. Area (sq ft) 3,000 - 11,800
Estimated Effective Rent (HKD psf) $37 - $41
Estimated Effective Rent (HKD psf) $16 - $18
Estimated Effective Rent (HKD psf) $21 - $23
Stelux House
Delta House
Grand Central Plaza
Approx. Area (sq ft) 1,800 - 13,300
Approx. Area (sq ft) 600 - 4,400
Approx. Area (sq ft) 1,200 - 7,600
Estimated Effective Rent (HKD psf) $18 - $20
Estimated Effective Rent (HKD psf) $17 -$19
Estimated Effective Rent (HKD psf) $31 - $34
193 Prince Rdward Road West, Mong Kok
698 Prince Edward Road East, San Po Kong
3 Sham Mong Road, Tai Kok Tsui
3 On Yiu Street, Sha Tin
OTHERS
KOWLOO N
712 Prince Edward Road East, San Po Kong
138 Sha Tin Rural Committee Road, Sha Tin
Estimated effective rent (HK$ 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
KOWLOO N
Recent Leasing Transactions Building
Approx. Area (sq ft)
Deal Type
Business Nature of Tenant
Monthly Effective Rent (HKD psf)
The Gateway Tower 1
29,140 (G)
New Letting
Others
$46.00
China Hong Kong City Tower 5
18,000 (G)
Renewal
Consumer Products
$30.00
TSIM SHA TSUI
8 Observatory Road
9,874 (G)
New Letting
Banking / Finance / Insurance
$32.08
China Minmetals Tower
8,923 (G)
New Letting
Others
$31.00
Miramar Tower
2,960 (G)
New Letting
Banking / Finance / Insurance
$51.53
Lu Plaza
21,928 (G)
New Letting
Others
$15.00
Manhattan Place
21,180 (G)
Renewal
Consumer Products
$31.00
AIA Kowloon Tower
19,821 (G)
Renewal
Others
$29.00
Skyline Tower
18,239 (G)
New Letting
Others
$16.19
16,151 (G)
New Letting
Consumer Products
$18.33
Laford Centre
9,166 (G)
New Letting
Others
$16.00
Trade Square
8,160 (G)
New Letting
Others
$20.50
Metroplaza Tower 1
6,216 (G)
Renewal
Manufacturing
$31.00
Saxon Tower
3,816 (G)
New Letting
Manufacturing
$26.25
Cheung Sha Wan Plaza 1
3,800 (G)
Renewal
Manufacturing
$21.58
3,646 (G)
New Letting
Others
$39.00
Skyway House
11,509 (G)
New Letting
IT & T
$16.00
Langham Place
11,892 (G)
Renewal
IT & T
$37.50
11,849 (G)
Renewal
Shipping / Logistics
$18.60
4,405 (G)
New Letting
Others
$34.00
KOWLOON EAST
KOHO KOWLOON WEST
HUNG HOM The Metropolis Tower MONG KOK
SAN PO KONG AIA Financial Centre NEW TER RITORIES Grand Central Plaza Tower 1 (G) = Gross
(L) = Lettable
(N) = Net
Page 36 | Colliers International | Moving Times
Unrivalled
Experience Disciplined Approach Measurable
Results
Our comprehensive project management services complement Colliers’ real estate capabilities to give you our best-in-class expertise.
Financial Services SUN LIFE
A complex project involving a 19,000 sq ft live office coupled with demanding AV infrastructure integration and IT distribution cabling that was delivered on time and on budget. Sun Life was able to fully integrate into their new office with no interruption to their business.
Information Technology RUCKUS
Successful completion of the project under the new one-stop-shop package tailored for young companies looking to establish or expand their footprint. This had subsequently opened up an exciting new line of business in the face of a testing market constraint.
Manufacturing LORD
Completed the restack project in a record 14 days, delivering continuity of functionality, greater capacity, improved space efficiency and an enhanced look and feel at a price markedly below our competitor’s offer.
Retail FOOTLOCKER
A successfully facilitated “Design & Build” new office project which offered Footlocker the convenience of dealing with a single point of contact for the entire project. Through careful monitoring of all aspects of the project in a stream-lined manner, a customised solution was developed for Footlocker which met their design and budget expectations.
CONTACT OUR PROJECT MANAGEMENT EXPERT COLLIERS INTERNATIONAL Suite 5701 Central Plaza 18 Harbour Road Wanchai Hong Kong Company Licence No: C-006069
www.colliers.com
Gareth Barlow Executive Director ( +852 2822 0705 gareth.barlow@colliers.com
BEAT
COLLIERS INTERNATIONAL | MARKE T OVERVIEW
HONG KONG’S
HEART
New
Lease renewals continue to dominate the office-leasing market, with supply remaining tight. Net take-up in this quarter marked a new high since Q1 2012, pushing the overall Grade A office vacancy rate down from 3.9% in Q2 2015 to 2.9% in Q3 2015. Central / Admiralty took the lead with net take-up there accounting for about two-thirds of the overall total during the quarter, pushing the vacancy rate in the district down to about 1.6%, the lowest level since the Global Financial Crisis in 2008. New demand for space in Central / Admiralty was mainly driven by corporates from mainland China. China Minsheng Bank, a major mainland commercial bank, replaced UBS as the tenant of one office floor in Two IFC. The Bank of Shanghai, a city-level commercial bank, took an additional floor of about 16,000 sq ft in Citibank Plaza. Some other Asian banks were looking for suitable options in non-core locations for expansion. For instance, Kookmin Bank Hong Kong, a subsidiary of the Korean bank, committed to lease over 8,000 sq ft in Central Plaza in Wan Chai.
In Kowloon, One Bay East in Kowloon Bay was completed in May 2015 with Citi and Manulife retaining the twin-tower development, with a total gross floor area of about 1 million sq ft, for owner-occupation. This reflects that quality office premises in Kowloon East remain attractive to owneroccupiers (e.g. insurers and financial companies) going forward.
Grade A Office Net Take-up 750,000
9.0%
500,000
6.0%
250,000
3.0%
0
0.0%
-250,000
Grade A Vacancy Rate
12.0%
1,000,000
1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015
The overall vacancy rate will remain low, with renewal activity continuing to dominate the market. Demand from mainland firms should remain strong. The tight supply in Central will result in companies that prioritise starting their business in the CBD, especially those from mainland China, moving into the fringe areas of Central. Individual mainland enterprises, especially those from the financial-services industry, are inquiring about property alternatives in Tsim Sha Tsui due to limited availability on Hong Kong Island. Such occupiers prefer office premises along Canton Road with sizes of about 5,000 to 10,000 sq ft.
Net Floor Area (sq ft)
Colliers View
-3.0%
-500,000
-6.0%
-750,000
-9.0% -12.0%
-1,000,000
The future redevelopment of Warwick House in Island East has triggered the tenants to look for alternative addresses. Swire Properties managed to retain most of these tenants in its portfolio. In view of the tight supply on Hong Kong Island, some of the tenants will move across the harbour, with Kowloon East as the major source of new supply in the coming few years.
Rental rise picks up pace Overall Grade A office rents increased 3.1 % quarter-on-quarter (QOQ), up from 2.0% growth in the previous quarter. Rents in Central / Admiralty outperformed other districts, increasing 5.5% QOQ during the review period.
3.1% GRADE A OFFICE RENT QOQ
Colliers View
Despite the stock-market turbulence over the past summer, mainland enterprises continue to look for suitable premises to establish their presence in the city. This drive is part of the mainland central government’s “Going Out” policy, which will also continue. Mainland corporates tend to choose Central as their first stop in Hong Kong, so we anticipate rental growth in Central will continue to outperform other districts over the near term as mainland corporates flow into the city. According to our report “The footprint of Chinese banks in Hong Kong,” the common practice of mainland banks is to set up a local representative office in the city with a size of 2,000
Page 38 | Colliers International | Moving Times
to 3,000 sq ft for starters. These banks can expand their space as much as ten-fold in Grade A buildings in Central / Admiralty within two to three years of gaining their full banking licenses in Hong Kong. Assuming a second batch of 15 mid-sized Chinese commercial banks will set up their full offices in the coming five years, the new demand for Central office space will be about 2% of the existing stock in the district. Given the ongoing tight supply, some non-financial tenants are expected to be priced out of Central.
COLLIERS INTERNATIONAL | MARKE T OVERVIEW
Office Demand Driven by Finance Sector Divergence in Kowloon The three-month moving average of re-exports slipped from positive growth of 3.7% year-on-year in February 2015 to a decline of 1.1% in May and another drop of 3.4% in August. Demand from sourcing and trading companies weakened amid the deteriorating re-export performance. Sourcing and trading companies are major tenants in Tsim Sha Tsui and Kowloon East. In Q3 2015, we observed more cases of the need to find replacement tenants in the two districts. The new cases recorded in Q3 2015 exceeded the total in the first half of 2015. A group of landlords became more flexible in lease negotiations thanks to signs of softening in demand from tenants. As a result, rental growth in Tsim Sha Tsui slowed from 4.2% to 2.3% QOQ and was outperformed by Central and Island East in this quarter despite the lowest vacancy rate in Hong Kong.
Colliers View
The performance of re-exports will remain flat in the near term amid the current slowdown of China economic growth. The demand for office premises in Tsim Sha Tsui and Kowloon East will remain soft in near term as a significant portion of occupiers in the two districts is sourcing and China trade related. Looking forward, the rental performance in the two districts will continue to underperform other districts on Hong Kong Island.
Stock market volatility hurts market sentiment During the three-month period ended in August 2015, the total value of transactions for properties priced above HKD30 million increased 47% QOQ to HKD7.19 billion. Individual vendors became more open to pricing negotiations in view of slow local economic growth and the likely rise in interest rates. However, the stock-market volatility in early August hurt market sentiment. The monthly transaction volume for strata-title properties priced above HKD30 million was in the range of HKD1.59 billion to HKD2.02 billion between May 2015 and July 2015. In August, the transaction volume of properties within this price bracket plummeted to HKD515 million.
Colliers View
Looking forward, the uncertainties related to the likely rise in interest rates will weigh on investment-market sentiment. We expect transaction volume will slow down in Q4 2015. There is growing concern about Hong Kong’s economic outlook with both local retail sales and exports showing signs of weakness. Local government statistics indicate that Grade A office yields have been hovering at an all-time low of 2.8% to 2.9% since Q1 2013. The future increase in interest rates is set to push up yield levels while putting downward pressure on office prices. The Economist Intelligence Unit forecasts that local real GDP growth will slow from 2.7% in 2015 to 1.9% in 2016. We expect average Grade A office rental growth to decelerate from 9% in 2015 to 4% in 2016 as economic growth slows down. We anticipate that Grade A office prices will increase about 6% for the full year of 2015 before falling 5% next year.
2016 OUTLOOK
RENTAL GROWTH DECLINE TO
4%
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 2869 4082 Email: offices.hongkong@colliers.com
www.colliers.com
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