Kowloon East office rents poised to match TST, survey predicts

Some office-space tenants expect rents in Kowloon East to rise steadily to match those in Tsim Sha Tsui in the next 10 years, according to a survey by Colliers International.

The property consultant surveyed 100 office tenants and investors/owners following the announcement by Chief Executive Donald Tsang Yam-kuen that Kowloon East would be developed as the second major business district. Colliers said both tenants and investors/owners had positive expectations of the market in the area.

According to the survey results, 44 per cent of the tenants expect that in the next 10 years rents in Kowloon East will rise to the same level as those in Tsim Sha Tsui.

The survey reported that this highlighted the confidence of many in the potential of Kowloon East, as existing rents in Tsim Sha Tsui were between 25 per cent and 35 per cent higher than Kowloon East.

Up to now, properties along Kwun Tong Road have commanded a higher premium than those located close to the harbour, according to Colliers.

About 75 per cent of the respondents to the survey said they believed that rents in buildings close to the seafront in Kowloon East would be the same as or exceed rents in projects proposed under the new CBD plan along Kwun Tong Road in the next 10 years.