The latest hot spot for commercial space is West Kowloon, mainly because of the completion of the International Commerce Centre (ICC), and brokers are already predicting that rents in the area will rise.
The main reason for the positive outlook is that the ICC provides a massive 2.5 million sqft of ultra-modern office space, the world's highest hotel, the Ritz-Carlton, and 1million sqft of luxury retail complex and leisure amenities.
Brokers and property analysts say that rents at the ICC, Hong Kong's tallest building, may rise by 20 to 30 per cent over the next two years, outpacing growth in areas outside the Central district.
This basically means that investment banks, such as Morgan Stanley and Credit Suisse, who were the first tenants to sign leases, will probably save millions in rents over the coming years.
Xavier Wong, director and head of research for Greater China at Knight Frank, told the media that monthly rents at the ICC had risen 83 per cent to about HK$55 per square foot since the first tenants moved into the building.
According to news reports, Hong Kong's Central district commands the world's second-highest office space occupancy costs behind London's West End.
