China’s economic slowdown and a slide in mainland visitor numbers may be affecting Hong Kong’s overall prospects, but there is at least one segment that is still being underpinned by cross-border demand — the office market.
The vacancy rate at commercial properties in the Central financial district has fallen to 1.3 percent, the lowest since 2008, according to the latest report from property consultant JLL.
By the end of August, overall Grade A office vacancy rate stood at 3 percent, down from 3.2 percent in the previous month, Hong Kong Commercial Daily cited the report as showing.
Mainland tenants have been the driving force behind the strong demand.
A Shanghai law firm, for instance, has leased a bigger area in Exchange Square to expand its business. In another example, a Chinese bank leased a floor from IFC to upgrade its Hong Kong office.
Apparently Hong Kong remains a big draw for mainland companies.
Initiatives like “One Belt, One Road”, mutual recognition of funds and Shanghai-Hong Kong stock link are attracting numerous Chinese financial institutions to the city.
Hong Kong is also seen as the best base for mainland companies to venture outside China, either for seeking new markets or for securing additional funding channels.
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