Knight Frank: Supply of Jiashia in Kowloon will see a steady rise in rent over the next few years

The Zhitong Finance App learned that the Kowloon office area has matured in the past ten years, and rents have also experienced ups and downs. Knight Frank believes that corporate demand for Jiashia in the Kowloon district will continue unabated, while supply will soon peak, rents will stop falling, and it can rise steadily every year for the next few years.

Knight Frank said that the current vacancy rate in the Kowloon area is about 14.5%, ostensibly 1 times higher than ten years ago. In fact, the overall occupancy situation of commercial buildings in Kowloon is ideal compared to ten years ago. Ten years ago, the total stock of Class A office buildings in Kowloon was about 28.5 million square feet, an increase of nearly 60%, mainly due to high supply, and the stock of buildings in East Kowloon has nearly doubled over the past ten years, while West Kowloon is also developing rapidly, giving tenants more choices and greater bargaining power. “The actual occupied area, There is still a net increase of more than 12 million square feet, indicating Demand isn't going away, just supply is coming faster.”

As for rent, Wu Zhifeng, the executive director and head of Knight Fong Kowloon, pointed out that rents have dropped by about 30% in the past ten years, mainly due to increased supply and changes in market conditions. “An average of 2 million square feet are completed every year, and gradually the landlord market is becoming dominated by tenants.”