DOWNTOWN REVIVAL While global banks are retrenching, local and regional banks are expanding their footprint in prime districts in some financial centers in the region. In Hong Kong, China’s financial institutions are leading the way, and in our view, this trend will continue. Beijing is pushing forward with plans to integrate Hong Kong into a Pearl River Delta mega-economy. Policies such as the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect and mutual funds recognition schemes point towards greater integration. Top Chinese finance companies have leased a total of 2.5 msf in Hong Kong so far this year. In addition, they have underpinned the recovery of the oŸce market in Greater Central, with most of the high watermarks in rents being set by mainland Chinese financial occupiers. While the factors driving the growth of mainland companies are

expected to persist over the long term, the lack of options in Greater Central will inhibit further take-up levels and sustain moderate rent increases over the next couple of years. In Singapore, the surge in new prime space in the CBD has also induced some banks to capitalize on this unique opportunity. Bank of Tokyo- Mitsubishi UFJ, Ltd. will be the anchor tenant for the trophy project Marina One that will deliver in 2017, and will be joined by Swiss-based bank Julius Baer, which will relocate from Asia Square Tower 1. Meanwhile, Seoul’s CBD stands to welcome some financial companies moving out of the Yeouido Business District (YBD), which has been home to the BFSI sector. Ample availabilities in the CBD have allowed financial behemoths such as Dashin Finance and Mirae Asset Global Investments to consolidate their operations scattered across Seoul.


$ 10 $ 12 $ 14 $ 16 $ 18

$ 0 $ 2 $ 4 $ 6 $ 8

U S $ / sf/ month Q 3 2016

N e w Y ork

L ond on

B e ij ing

S h a ng h a i H ong K ong S ing a pore

J a k a rta


D e c e ntra liz e d

Source: Cushman & Wakefield Research *London refers to City core and Canary Wharf, both of which are classified as Central London



Made with