OFFICE prices on Hongkong Island increased by an average of 18.4 per cent, and in Kowloon by an average of 27.2 per cent in the nine months from June last year, despite continuing political uncertainties and doubts over renewal of China's Most Favoured Nation (MFN) trade status.
The current shortage of office space in Tsim Sha Tsui was highlighted by the 33 per cent price increase for the Houston Centre to HK$6,200 per square foot.
This was backed up by the 21.7 per cent rise to $7,300 per sq ft in the East Ocean Centre, according to the April 1993 office market review from Chesterton Petty.
These capital increases reflect not only the general improvement in the office investment market, but also the lack of high quality office developments available for sale in the area, the report says.
However, this shortage will be relieved by 1994, with new developments coming on stream, such as Park Lane Square phase II, with 600,000 sq ft of office space, and the Cheuk Nang Centre, with 38,000 sq ft.
In 1994, the 36-storey Gateway Towers, with 1.4 million sq ft, will also become available.
On Hongkong Island, the Shun Tak Centre also showed significant capital increase in the first quarter of this year, as did the Lippo Centre, where the entire 13th floor was sold for $102 million, or $6,850 per sq ft.
