Government relocations 'will take time' to ease office supply

The government plan to relocate some of its offices away from the core districts of Central and Wan Chai is unlikely to ease the tight supply of grade-A office space in the short term as it will be three or four years before the vacated space is available to new tenants, say property consultants.

Financial Secretary John Tsang Chun-wah detailed the amount of commercial space that would be released to private tenants by the withdrawal of the government from the key sites in the central business district.

On completion of rezoning procedures, the site formerly occupied by the Independent Commission Against Corruption, which has moved to North Point, could provide 40,000 square metres of grade-A office space in Murray Road, Central.

Office space leased by the government in Central and Admiralty would be reduced to less than 230 square metres by 2015, from the present 27,000 square metres. And the sale of three government office buildings in Wan Chai, once personnel are relocated in phases to Kai Tak and Tseung Kwan O, will provide 175,000 square metres of commercial space in the core CBD.

Finally, the relocation of staff from the Trade and Industry Tower next year will release more than 18,000 square metres in Mong Kok for commercial use.

John Siu, an executive director of valuers Cushman & Wakefield, said the relocation of the ICAC had freed up a prime site in Murray Road that would be big enough to be developed into a medium-sized office building.