TMT firms drive the Hong Kong and Beijing office rental markets
Technology, media and telecoms sector the biggest driver of demand for space, say property agents, as growth in investment banking slows
The fast-growing technology, media and communications sector is taking a significantly larger share of the total office leasing market both in Hong Kong and Beijing, according to property consultants.
"The trend started in Hong Kong in the second half of last year, and the sector has become a new demand driver as expansion by investment banks slows," said Andy Yuen, director of office agency for property consultancy DTZ.
"Apart from recent expansion by the popular names, there are some new names coming as well. The sector has become strong, particularly as others grew weak," he said.
According to DTZ, the TMT sector accounted for 15 per cent of office take-up in Hong Kong in the first three quarters.
Total space taken up by the sector in nine leasing deals concluded in the first three quarters amounted to more than 190,000 sq feet .
In Beijing, the TMT sector only began to emerge as a major occupier of office space last year , according to DTZ. In the first three quarters of this year, TMT tenants took up 77,000 square metres of space, or 20 per cent of the total office leasing space taken up over the period.