Office leasing activity in non-core areas on Hong Kong Island fell 26.1 per cent to 572 deals in the third-quarter from the previous quarter, according to Centaline Property Agency.
The deals involved a take-up of 1.09 million square feet of floor area, a drop of 31 per cent or 493,000 sq ft from the previous quarter. The consultant said the sharp fall was attributed mainly to the slowdown of leasing as the market lost confidence in September.
Freddy Ho, senior district sales manager at Centaline's commercial division, said companies had reduced the amount of office space leased in September following the terrorist attacks in the United States.
He said office rents in non-core areas suffered less than core areas, reporting drops of 10 per cent or less during the quarter. Activity for medium-size and large lease deals suffered in particular.
