The investment of Grade A office in Hong Kong
The rental & sales market of Hong Kong office mainly focus on Hong Kong Island district and the Kowloon Peninsula district, including Central, Admiralty & Wan Chai. These areas are the most popular commercial and residential district in Hong Kong, with a higher rental and sales price than any other locations. In addition, there are more leasing and trading activities in the area.
There are many large enterprises, such as Morgan Stanley and HSBC Bank of Asia and the Pacific, headquarter in the Hong Kong Central District & Victoria Harbour area where many government buildings and grade-A commercial buildings are located in. Over the past decade, the general rental & sales price level of grade-A office has been stably increasing. Compared with 10 years ago, the average rent has increased about 65%, while the growth of the sales price are more significant, due to the supply of grade-A office being not enough by government's Land policy.
The reasons for selecting the traditional Grade A office core area:
1) High hedge potential:
The traditional Grade A office core area (Central, Sheung Wan, Admiralty, Wan Chai) has a brillant potential of hedging, even during the depression of economics.
2) Company identity:
Office locating within between governments headquarter and world-famous enterprise are one of the symbols of the social status.
3) Lack of supply:
Recently the supply of new grade-A office has been limited due to the lack of land. Therefore, the rental & sales price of grade-A office will only rise in the future.