Gentrifying Wong Chuk Hang on the up and up as Hong Kong’s business hub with cheaper rents
Accountancy major KPMG negotiating 150,000 sq ft of space in Swire Properties’ soon to be ready South Island Place
A growing number of international financial institutions are planning to relocate away from traditional prime areas as they look for larger and cheaper office space and within easy reach of the city’s main business district. And Wong Chuk Hang fits the bill perfectly.
With rents for grade A offices in Central and Causeway Bay nearing record highs, some blue chip corporate tenants are heading for the old industrial district in the south of Hong Kong Island, where some of the cheapest rents for premium office can be found in the city, said market watchers.
“The current rent there is only about a third of that in Central,” said James Mak, district sales director at property broker Midland Commercial. “International companies, particularly those in finance and banking, who usually need larger space, are considering a move to Wong Chuk Hang from Central, Wan Chai or even Causeway Bay.”
Mak expects the transition to accelerate if the first big name, KPMG, moves to the gentrifying hub east of Aberdeen.
The insurer AXA and international news channel CNN are among some of the top companies that have already moved there.
