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16.
PRIVATE OFFICE
Overall completions in 1996 were around 269,000 square metres, about 24% less than the completions in 1995. Take-up decreased to 156,000 square metres in 1996. Vacancy was 824,000 square metres, representing 11.2% of stock. About 27% of the vacant floorspace was found in new developments completed during the year.
Completions in 1997 are forecast at around 485,000 square metres and expected to rise further to about 695,000 square metres in 1998.
The overall price index was up by 6% but the rental index showed a drop of 9% compared with the levels in the last quarter of 1995.
Grade A
Completions of Grade A offices in 1996 were 131,000 square metres, about 8% higher than that forecast a year ago but still 52% below the 5-year average of 272,000 square metres between 1991-1995. Around 72% of the space was provided in non- core office districts.
Take-up in 1996, at around 124,000 square metres, was slightly below the year's completions. Vacant space amounted to about 354,000 square metres, representing 8.3% of stock. The fact that around 50% of the completions were in the last quarter contributed to the higher vacancy.
Completions in 1997 are forecast at 344,000 square metres, with 55% in core office districts and about one-third in North Point. Completions in 1998 will continue to rise to about 500,000 square metres. Emphasis will again be on non-core office districts, accounting for almost 60% of the anticipated floorspace.
Grade B
Grade B space completed in 1996 amounted to 90,000 square metres, nearly 10% up on 1995 levels. About 70% of the completions were in Hong Kong districts.
Space taken-up in 1996 was low at around 35,000 square metres, resulting in a rise in vacancy to 263,000 square metres, or 14.6% of stock.
Completions in 1997 will fall to 66,000 square metres, distributed evenly between Hong Kong Island and Kowloon. In 1998, completions are expected to rise again to 120,000 square metres and 75% of the space will be provided in Hong Kong districts.