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Hong Kong government departments take advantage of falling rents to lease more office space in Kowloon
- The Transport Department recently signed a lease in Kowloon, while the Lands Department is looking additional office space, according to Knight Frank
- With more companies starting to expand amid an improving economy, the city’s grade A office market recorded its first net absorption since July 2019, JLL said
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The Hong Kong government is taking advantage of the drop in office rents to seek additional space for some departments, joining private companies looking to expand amid an improving economy.
The Transport Department recently signed a lease for a huge office space in Kowloon, while the Lands Department is in talks with landlords to take up additional office space, according to Knight Frank.
In May, office rents in Kowloon East fell 9.3 per cent year on year to HK$26.9 per square foot per month, while in Central they dropped 12.9 per cent to HK$111.8 per square foot compared to a year ago, the latest data from Knight Frank showed.
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“They are mainly looking for space in Kowloon where rents are about a quarter of those on Hong Kong Island,” said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank.
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The Transport Department recently leased 27,000 sq ft at Skyline Tower in Kowloon Bay, a core part of Hong Kong’s plan to transform Kowloon East into the city’s second core business district, at about HK$22 per square foot, while the Lands Department is looking for additional space close to its Cheung Sha Wan offices, he said.
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