Statistical analysis of rental transactions of major commercial properties in Hong Kong Island (Jul 2008)
$25.48 million of transaction made it highest record
265 transactions made it highest record within 12 months
Mr. Wong Leung Sing, the Associate Director (Research Department) of Centaline Property Agency Limited pointed out that, rental transactions of major commercial properties in Hong Kong Island had scored $25.48 million in Jul 2008 (which was a 86% increase when compared to Jun 2008), exceeding the old record of $24.57 million made in Jul 2007, and is the highest record since the date of Jan 2006 that we first kept transaction data. The record-breaking transaction amount is contributed by the obvious increment in core districts. In terms of number, there had been 265 rental transactions (a 23.3% increase from Jun 2008) concerning commercial properties on Hong Kong Island made in Jul 2008, and is the highest record since the 326 transactions recorded in Jul 2007. According to the record from the rental market of commercial properties, it is seen that there is still a considerably high demand for commercial properties, especially those high quality properties within the core districts. On one hand the weakening investment atmosphere had pulled down the general number of transactions, but on the other hand the rental price is uprising due to the actual high demand.
Analyzing by districts, there had been increments in all regions on Hong Kong Island concerning transaction amount of rental transactions of major commercial properties, in which districts of Central/Admiralty had recorded the most obvious increment. Central/Admiralty had scored $10.58 million in 71 rental transactions of commercial properties in Jul 2008, which had increased for 128% and 18.3% respectively from the $4.64 million made in 60 transactions recorded in Jun 2008. The obvious increment is thought to be due to the presence of several large-scale transactions in Central / Admiralty, including a bunch of units on the upper floor of Gloucester Tower, a whole floor unit on middle floor of Nexxus Building, and a unit on the middle floor of Bank of America Tower etc.
Marginal districts of Sheung Wan / Western District and Wanchai / Causeway Bay had both recorded increments of more than 65% in rental transactions of commercial properties in Jul 2008. Sheung Wan / Western District had recorded $5.04 million (63 transactions) in Jul 2008, which was 93.7% increased from the $2.60 million made in Jun 2008; while Wan Chai / Causeway Bay recorded $5.93 million (103 transactions), which had increased for 66.0% when compared to Jun 2008. Meanwhile, North Point / Quarry Bay had scored $3.89 million (27 transactions) in Jul 2008, which increased for 36.0% when compared to Jun 2008.
Analysing by property area, both the number of rental transaction and the total transaction amount of commercial properties on Hong Kong Island had recorded increments within all property size ranges in Jul 2008, in which properties sized "5,000 to 10,000 sq. ft." recorded the most obvious increment. Properties within this range recorded $7.22 million in 22 transactions, and were 487% and 267% rises from the $1.23 million in 6 transactions made in Jun 2008. This record is followed by ranges of "10,000 sq ft. or above" and "1,000 to 3,000 sq. ft.", which recorded $5.33 million and $8.02 million respectively, showing increments of 107% and 40.6% respectively when compared to Jun 2008. Meanwhile, ranges of "3,000 to 5,000 sq. ft." and "1,000 sq. ft. or below" had recorded monthly increments of 19.8% and 11.2%, which made them $3.50 million and $1.41 million respectively.
The Centaline Property Agency