There have been no new additions to the grade A office market since the completion of MLC Tower in 1999. The stock of grade A space will remain unchanged until the completion of Pacific Forum in 2004. The Swire development is located at 1 Queen’s Road East and will provide approximately 0.449 million sq ft net of space upon completion. Prime capital values in the Wanchai/Causeway Bay district averaged HK$3,142 psf in December, unchanged from the previous quarter.
As to matter of value versus cost and quality, worth is not anticipated that would be identical to cost or expense, as cost implies use in certified terms, while cost on other hand is the whole that is paid by some individual for a specific thing. how long does land valuations take?
However, prices fell 13.5% when compared on a year-on-year basis. Although investors have been more active in the Wanchai/Causeway Bay district than compared to Central, the majority of transactions have been for lower grade properties. The yield for prime strata-title buildings in the district averaged 6.0% in December.Also, tenants looking to relocate out of the district may become more apparent over the course of the year due to abundant supply and falling rents in other districts such as Central.
Rents for offices in Quarry Bay averaged HK$15.04 psf/month in December, which represents a decline of 4.9% over Q4. However the decline in rents in North Point was even greater over the quarter, falling 9.4% to average HK$12.66 psf/month in December. . Rents have held up slightly better in Quarry Bay as Swire, the major landlord in Quarry Bay, has been reluctant to lower rents for buildings in its portfolio.
There was little evidence of take-up of space in Quarry Bay. However, there was some leasing activity noted for some of the newer developments in North Point, such as 148 Electric Road, 625 King’s Road and CEF Lend Lease Plaza. Although take-up in these buildings has been slow, available space for lease is higher in North Point compared to Quarry Bay. No new grade A developments have been completed in Island East since the addition of 148 Electric Road in 2000.