HK Office Market: More Activity, But No Bottom Yet?

Watch HK Office Market: More Activity, But No Bottom Yet? - Bloomberg on Dailymotion

Transcript

00:00What's the current occupancy rate generally?

00:02So vacancy is around 17%.

00:05Currently?

00:06Yes, yes, yes.

00:07And the expectation is that goes down?

00:08For next year we are going up further.

00:10Oh, because we have new stuff coming online?

00:11Yes, correct, yes.

00:12Okay, talk to us about, we talked about some of the big deals recently.

00:16Where has the recent demand emerged from?

00:20Who are the sort of the big groups that are coming into the city and taking up more?

00:23So a lot of activities now happening is really the existing tenant relocating

00:29to better quality buildings or consolidating different locations into one office.

00:34Okay.

00:35So that's the activity we have seen.

00:37The Henderson, the brand new signature building in Hong Kong.

00:41Yeah, they blocked our view across the street.

00:43So that is almost 85% occupied.

00:46So that shows a really good pick up in terms of people looking for the better quality buildings.

00:51So that's one action.

00:53But we do see IPO impact going forward.

00:56So we have over 100 IPOs happening in 2025.

01:00And that's the largest number compared to New York and any other cities, right?

01:05So if they come to Hong Kong, now maybe they have a satellite city offices, small, less than five people.

01:12But once the market goes up and their business grows, then they will expand the space within Hong Kong.

01:18So that's one thing we have to pay attention.

01:21And then government pushing so much effort on the wealth management, private equity fund, hub, arbitration centers.

01:29So those newcomers are expecting coming up for 2025, six or beyond.

01:35But scale will be quite smaller than what we expected.

01:39So that's a great opportunity.

01:41Why will you meet people?

01:43We'll see you soon.

01:44My colleagues, the minister, the minister, the minister, the minister, the minister who is on the behalf of the region.

01:47I think that the 1st appear at the World of Canada is going to come up for 30 years.

01:51However, you will see the city with you, right?

01:53I think that we can complete the city with you.

01:55It's been a huge part of it.

01:57That's the big part of our community.

01:59I think that the two main life.

02:01It's been a huge part of our community and the first part of our country to put together in the world.

02:03So we can't get a huge part of what you're doing so far.