Many more - especially multinationals - are expected to follow suit.

According to industry watchers, property giant Swire has played a large part in the new trend.

The company, a wholly owned subsidiary of Swire Pacific, was formed in 1972 with the aim of developing the area.

Mr Sam Whiffin, a director at agents Jones Lang Wootton, said: ''I think it is becoming the premier decentralised business district.

''It's fair to say Swire is the main reason for that.'' The transport infrastructure has gone a long way to boosting the area's potential.

Quarry Bay MTR is the only one - apart from Admiralty - with a direct crossing to Kowloon side. It is also next to the Eastern Harbour Crossing and the road network is less congested than the more traditional business districts.

Pricewise it is also a better deal. In Grade A properties, rents are often half those in Central, and up to 30 per cent cheaper than Wan Chai and Causeway Bay.

One firm which has made the move is Standard Chartered Bank.

It has maintained its head office in Central but has taken over 140,000 square feet in the Cityplaza complex in Taikoo Shing.

Mr Roland Bruce, an analyst at Standard Chartered Securities, said: ''It's simply a situation where many companies are looking for better value for money.

''They keep their head office in Central, but move the back-up functions away where rents are cheaper.'' Mr Terence Chow, a director with agents Vigers, said: ''During the office boom in the late 1980s, rents in Wan Chai and Causeway Bay went up very quickly.

''Some firms moved further out to Quarry Bay and we sometimes called them refugees.

''They started occupying the better quality industrial buildings as offices.

''We thought this wouldn't last for long but we were proved wrong.

''The occupancy level of these buildings has remained strong and I see no reason for that to change.'' Mr Chow said the demand for prime office space in Quarry Bay would continue.

More firms want to establish their ''back room'' operations away from the central business district (CBD). It is this kind of space which Swire is concentrating on.

''Swire build things big and to a high quality which also attracts the multi-national companies,'' Mr Chow said.

''It has established itself as very much the major force in the area.

''The profit it has made points to more redevelopment.

''I think it will continue buying. It's not easy to acquire buildings which are strata-title owned but Swire is looking at this as a long-term thing.'' The firm's association with Quarry Bay stretches back to the 19th century when John Swire and Son built the Taikoo Sugar Refinery on the harbour front.

Swire added to its growing portfolio in Quarry Bay last week when it bought the Toppan Building for $750 million.

It also acquired the South China Morning Post building in Tong Chong Street in December for $500 million.

It now has several commercial and residential complexes within close proximity of each other.

In Taikoo Place, formerly known as the Taikoo Trading Estate, it owns Devon House, Dorset House, Somerset House, Warwick House, Cornwall House and Hongkong Telecom Tower, which is under construction. In Taikoo Shing it holds the Cityplaza complex.

Jones Lang Wootton is one of two sole leasing agents for the Dorset House development, which received its occupation permit last month.

Mr Whiffin said 80 per cent of the office space had already been leased and demand for the rest outweighed supply.

''It has taken a firm like Swire, which has a historic association with the area, to have the commitment and vision to produce a good quality product,'' he said.

''In terms of an office location Quarry Bay has now come very much into its own right.

''More development depends on availability and depends on the building but Swire's commitment is long term.''