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MARKET OVERVIEW
HONG KONG
BANKING AND FINANCIAL SECTOR SUMMARY
204.84
15.0% 30%
47%
Banking and Financial Sector Trends
In 2016, mainland Chinese banks and financial
institutions continued to be major players in
the Hong Kong Grade A oce leasing market.
However, a slightly negative absorption rate
has been recorded in the core areas, reflecting
the slowdown of expansion and/or relocation
of multi-national corporations (MNCs) in this
sector. A clear pattern of decentralization can
be observed among these companies. For
instance, in the first quarter of 2016, Mizuho Bank
announced its relocation from Prime Central to
K11 in Kowloon and Hong Kong South.
In 2014 and 2015, Greater Central recorded 0.7
million sf (msf) of new leases annually. Mainland
companies’ share of major new leases in Greater
Central (CBD) grew dramatically from 13% to 44%
in the same period.
Outlook, Opportunities & Strategies for Occupiers
No major oce project are expected to be launch in Greater Central
next year. Despite the slight increase in available space in Greater
Central, availability in Prime and Grade A buildings is expected
to remain tight amidst ongoing demand from mainland financial
institutions, while rents are expected be stable in the coming 12
months. It is believed that Greater Central will continue to empower
landlords in terms of tenant selection and rental negotiations.
Prime Rent*
(USD/Sf/Year)
Rental Growth
(YOY in local currency)
% Occupancy by
Financial Sector
(Overall)
% Occupancy by
Financial Sector
(CBD)
Key Banking and Financial Services Sector Lease Transactions – 2016
PROPERTY
SF
TENANT
TRANSACTION TYPE SUBMARKET
One Exchange Square
53,700 HKEX
Renewal
Greater Central
One Island East
39,800 Accenture
Consolidation
HKE
Three Pacific Place
15,000 NG Wholesale Bank
Relocation
Greater Central
Two Exchange Square
13,900 Orix Asia
Consolidation
Greater Central
Two Exchange Square
13,100
Julius Baer
Expansion
Greater Central
AIA Central
12,600 China Minsheng Investment
Expansion
Greater Central
Three Exchange Square
12,200 China Zheshang Bank
New Set-up
Greater Central
Key Banking and Financial Services Sector Sale Transactions – 2016
PROPERTY
SF
BUYER
PRICE
(US$ MIL)
PRICE
(US$/SF)
SUBMARKET
One Harbour Gate East Tower 280,000 Cheung Kei Group 577
2,071
Kowloon Others
Dah Sing Financial Centre
400,571
China Everbright
1,289
3,217
WC/CWB
The expected launch of the Shenzhen–Hong Kong Stock
Connect in 2016 will further support the Hong Kong
financial sector. Mainland financial institutions will
remain the primary driver of the o ce leasing demand
in Greater Central.
- John Siu, Managing Director
* Prime Central
42 ASIA PACIFIC BFSI OUTLOOK 2017