Demand for office space across Hong Kong Island to continue in 2016

Even if there’s ongoing economic uncertainty.

In terms of property in the office market, it has been noted that with the supply of prime quality offices standing at zero, vacancy rates across Hong Kong Island remained incredibly low.

According to a release from Colliers International, despite ongoing economic uncertainty, demand for top quality rental premises in Central continues to be active.

“This is especially true among Mainland Chinese banks wishing to set up operations on Hong Kong Island,” Wendy Lau, executive director of Hong Kong office services, explained. This trend is expected to continue in 2016.

Here’s more from Colliers International:

Kowloon is a different story, however with diminishing demand and tenants opting to renew for shorter lease terms – typically one or two-years – compared with 2013 and 2014. As a result of the lackluster demand, rents in Kowloon have levelled out during the last 12 months.

“Looking ahead to 2016, with an increase in supply of both new and revitalised properties, it is likely that the market turns in favour of tenants, who will be able to secure terms last seen in 2008-9. The resultant over-supply will lead to a rise in vacancy rates from 2.9% to 5-6%, driving more relocations,” Patrick Mak, senior director of Kowloon office services, forecasted.