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DOWNTOWN REVIVAL
While global banks are retrenching,
local and regional banks are expanding
their footprint in prime districts in
some financial centers in the region.
In Hong Kong, China’s financial
institutions are leading the way, and
in our view, this trend will continue.
Beijing is pushing forward with plans
to integrate Hong Kong into a Pearl
River Delta mega-economy. Policies
such as the Shanghai-Hong Kong and
Shenzhen-Hong Kong stock connect
and mutual funds recognition schemes
point towards greater integration.
Top Chinese finance companies have
leased a total of 2.5 msf in Hong Kong
so far this year. In addition, they have
underpinned the recovery of the oce
market in Greater Central, with most
of the high watermarks in rents being
set by mainland Chinese financial
occupiers. While the factors driving
the growth of mainland companies are
expected to persist over the long term,
the lack of options in Greater Central
will inhibit further take-up levels and
sustain moderate rent increases over
the next couple of years.
In Singapore, the surge in new prime
space in the CBD has also induced
some banks to capitalize on this
unique opportunity. Bank of Tokyo-
Mitsubishi UFJ, Ltd. will be the anchor
tenant for the trophy project Marina
One that will deliver in 2017, and will
be joined by Swiss-based bank Julius
Baer, which will relocate from Asia
Square Tower 1. Meanwhile, Seoul’s
CBD stands to welcome some financial
companies moving out of the Yeouido
Business District (YBD), which has
been home to the BFSI sector. Ample
availabilities in the CBD have allowed
financial behemoths such as Dashin
Finance and Mirae Asset Global
Investments to consolidate their
operations scattered across Seoul.
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RENTS OF CBD VS DECENTRALIZED LOCATIONS
Source: Cushman & Wakefield Research
*London refers to City core and Canary Wharf, both of which are classified as Central London
SEOUL, SOUTH KOREA
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