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Office Market Net Absorption Reached 183,000 Sq Ft in Q3, Driven by Pre-Committed Space in Hong Kong East

New “0+3” quarantine measure to help reignite business travel, although no immediate boost to tourism activities is anticipated

  • Hong Kong’s Grade A office market remained generally quiet in Q3, but pre-commitments at new project completions pushed up citywide net absorption to reach 183,000 sq ft
  • Overall office rents fell by a further 2.3% q-o-q, although the decline is expected to narrow in Q4, with the full-year rental movement forecast now in a -3% to -5% range
  • The retail market is recovering slowly, with retail sales in the first eight months down by 1.5% y-o-y; some retailers have held back on expansion plans in response to a still uncertain timeline for a full border reopening with mainland China
  • The recently announced “0+3” quarantine measure will help stimulate outbound spending but may not immediately attract an influx of tourists to Hong Kong, weighing on the short-term retail recovery

HONG KONG SAR – Media OutReach – 6 October 2022 – Global real estate services firm Cushman & Wakefield today published its Hong Kong Office and Retail Leasing Markets Review and Outlook Q3 2022 report. Office and retail leasing activities were both relatively quiet in Q3. Overall office market net absorption returned to positive territory on the back of pre-commitments at new projects within the Hong Kong East district. Nevertheless, a rise in the availability rate saw rents trend downward at -2.3% q-o-q in Q3. The local retail market also remained weakened, with total retail sales for January to August 2022 recorded at HK$226.7 billion, down 1.5% y-o-y. While the latest “0+3” quarantine rule for inbound travelers may not immediately boost tourism to Hong Kong, it may instead spur locals towards outbound travel and hence impact short-term domestic retail sales.

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Office market

Office leasing activities remained quiet in Q3, against a backdrop of global economic instability, interest rate hikes, and continuing uncertainty over the Hong Kong-mainland China border reopening. The overall office rental level further trended further downwards, at -2.3% q-o-q and -4.0% YTD. By submarket, core districts such as Greater Tsimshatsui and Greater Central experienced more notable drops, down by 3.1% q-o-q and 2.4% q-o-q, respectively (Chart 1). Overall rents have now fallen by 29% since their peak in April 2019.

John Siu, Managing Director, Head of Project and Occupier Services, Hong Kong, Cushman & Wakefield stated: “As office availability remains high, some landlords have adopted more flexible leasing plans, such as providing rent-free periods and capital expenditure subsidies to attract tenants. Having said that, since office rents have dropped almost 30% from the last peak in 2019, a further major rental correction is unlikely. The recent “0+3″ measure and the gradually relaxed quarantine arrangements will likely help to bring a positive spin by improving capital flow and business travel. We expect the overall office market rental decline will narrow in Q4, with the full year rental forecast now in the -3% to -5% range.”

In terms of net absorption, the positive figure of 183,000 sq ft in Q3 was mainly driven by pre-commitments at newly completed offices (Chart 2). Submarkets with new office completions, such as Hong Kong East, Hong Kong South, and Kowloon East, all saw rebounds in net absorption in Q3. However, overall new leasing demand in the market remained sluggish, with some companies returning space to the market upon lease expiry for cost-saving purposes. Combined with the impact of the 2 million sq ft of newly completed office space in Q3, the overall availability rate climbed to 16.1%, up from 13.8% in Q2.

John Siu further stated, “There were quite a few notable office completions this quarter, including Two Taikoo Place in Hong Kong East, which had witnessed relatively strong pre-commitment, pushing the submarket’s quarterly net absorption to 348,000 sq ft. In terms of new leasing transactions by floor area, the banking and finance (26.7%) and professional services (22.7%) sectors remained the key drivers, while we also saw new lettings from government entities, insurance firms and flex space operators pick up notably, accounting for 15.7%, 11.3% and 10.6% by share, respectively (Chart 3). Core submarkets recorded several leases via flex space expansions in recent months, with more businesses looking for flexible lease terms and lower capital expenditure amid a market facing economic uncertainty and interest rate hikes. We expect to see this trend remain in 2023.”

Retail market

The retail market remained subdued in Q3, with stock market volatility and interest rate hikes leading to more conservative local spending. Total retail sales decreased by 1.5% y-o-y for the first eight months from January to August 2022, although the medicines & cosmetics, supermarket, F&B, and daily necessities sectors performed relatively well (Chart 4). Sales in the month of August 2022 fell 0.1% y-o-y from the high base of last year, reflecting a more cautious spending attitude from the general market.

In terms of high street store vacancy rates, submarket performance varied, with Hong Kong Island performing better than Kowloon. Vacancy rates in Causeway Bay (5.3%) and Central (8.5%) have fallen to their lowest levels since the pandemic, despite some being short-term leases, while vacancy in Tsimshatsui (16.7%) and Mongkok (12.5%) in Kowloon rose slightly. In Tsimshatsui, vacant stores have become more evident in traditional tourist streets such as Canton Road, while some large retailers in Mongkok have also downsized or are undertaking consolidation.

Kevin Lam, Executive Director, Head of Retail Services, Agency & Management, Hong Kong, Cushman & Wakefield stated, “Although the government has gradually eased quarantine measures, Hong Kong and mainland China have yet to achieve a full border opening, making it difficult for retailers to deploy expansion plans. As a result, leasing activities remained quiet in Q3. However, vacancy rates in Central and Causeway Bay have dropped significantly compared with the beginning of the year. Although Causeway Bay is traditionally supported by tourist activities, the district is transforming and has become more appealing for local consumers. Meanwhile, consumption activities are still focused on local office workers and high-spending groups, as Central will continue to display resilience despite dampened tourism activities.”

In terms of high street rents, suburban submarkets such as Yuen Long and Tuen Mun were relatively stable, but the core submarkets’ rents continued to come under pressure. Rents at traditional tourist districts such as Causeway Bay and Tsimshatsui fell more significantly, by 1.9% q-o-q (-7.6% YTD) and 1.2% q-o-q (-5.1% YTD), respectively. In contrast, rents at local consumer-heavy districts such as Central, Yuen Long and Tuen Mun were relatively stable. Rents in the F&B sector were also relatively resilient, with the exception of Central, with the other submarkets’ rental levels rising slightly at 0.9% q-o-q to 1.4% q-o-q in Q3 (Chart 5).

Kevin Lam added, “The government’s latest announcement of the “0+3″ quarantine measure may not immediately attract an influx of tourists to Hong Kong, yet it could encourage locals to travel abroad, as they have been frustrated by stringent quarantine measures since the beginning of the pandemic. In the short term, outbound travel by locals could weaken local consumption and hence weigh on rental levels in Q4. However, the recently announced relaxation of restaurant dine-in rules, to allow 12 people per table, should lend support to F&B performance. As we enter the year-end holiday season, short-term leases will likely be more popular and we expect vacancy rates to reduce further towards the end of the year. Meanwhile, unless the government introduces more favorable policies for the retail market, high street retail rents are not expected to see significant rises until the second half of next year.”

Please click here to download photos.

Photo caption:
Picture: John Siu, Managing Director, Head of Project and Occupier Services, Hong Kong, Cushman & Wakefield (left); Kevin Lam, Executive Director, Head of Retail Services, Agency & Management, Hong Kong, Cushman & Wakefield (right)

Hashtag: #CushmanWakefield

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms in the world, with approximately 50,000 employees in over 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region, earning recognition and winning multiple awards for industry-leading performance. In 2021, the firm had revenue of $9.4 billion across core services including valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. To learn more, visit or follow on Twitter.

The Mekong Tourism Forum is Back!

A woman sitting next to Thu Bồn river in Hoi An, Vietnam
A woman sitting next to Thu Bồn river in Hoi An, Vietnam

After a two-year hiatus due to the Covid-19 pandemic, the Mekong Tourism Forum (MTF) is returning as a physical event in 2022. Organized with the intention of promoting the Greater Mekong Subregion (GMS) as a single tourist destination, the event provides a collaborative platform for travel and tourism stakeholders to discuss regional tourism development in the GMS countries of Cambodia, Laos, Myanmar, Thailand, Vietnam, and China (specifically Yunnan and Guangxi provinces).

The MTF 2022 will be held in Quang Nam Province, home to the ancient town of Hoi An in central Vietnam, from 12–13 October and will also focus on the marketing and promotion of travel to, from, and within the GMS.

Poster for the Mekong Tourism Forum 2022

The theme for this year’s forum is “Rebuild Tourism, Rebound with Resilience,” making the event the first interactive in-person occasion bringing together public and private-sector tourism leaders and experts from the Greater Mekong Subregion (GMS) and beyond since the pandemic began. It will primarily focus on targeted regional efforts and collaboration across sectors to rebuild a more resilient, inclusive, and sustainable tourism industry.

The forum will be featuring insightful conversations about critical trends and issues related to tourism recovery communications, digital transformation, supply chain localization, and capacity-building support and upskilling programs for the tourism workforce, particularly among micro, small and medium-sized enterprises.

Set amid the backdrop of a UNESCO World Heritage town rich in history and culture in between the sea and mountains, it is an excellent opportunity for people to escape the virtual realm and return to the real world while reconnecting and networking with regional tourism leaders and experts.

Aerial view of the ancient town of Hoi An

Register here to attend the tourism exhibition that will aim to showcase regional best practices in sustainability and local creative tourism products from across the region.

Pakngum Police Arrest Man With Over 23,000 Amphetamine Pills

A drug dealer carrying over 23,000 amphetamine pills was detained in Pakngum by the police.

LaoSafe Takes to the Air

Lao Airlines and Lao Skyway have both achieved the ‘SafeFlight’ certification under the LaoSafe programme, facilitating passenger travel to exciting new destinations.

VIENTIANE, LAOS – Media OutReach – 6 October 2022 – New flight routes are opening this October that will provide a broader range of options for travellers hoping to visit Laos, as LaoSafe certification of the country’s two airlines, Lao Airlines and Lao Skyway, will ensure that passengers can be confident of boarding a flight with high hygiene standards.

Both of Laos’ airlines have now been fully certified under the SafeFlight standard, one of a series of health and hygiene certifications under the LaoSafe programme. SafeFlight ensures that cabin crew and flight staff abide by strict hygiene regulations to ensure a clean and comfortable flight for passengers.

“The LaoSafe certification has allowed us to demonstrate our commitment to safe and clean hygiene travel standards for everyone,” affirms Mr Sitthideth Douangsiththy, Deputy Director of Lao Airlines.

“Building trust among local and international flyers with the certification on board, our cabin crew follow the LaoSafe hygiene standards, giving passengers the cleanest possible experience,” he added.

According to the SafeFlight standards, all airline personnel must follow health and hygiene protocols set in place for maximum cleanliness. This includes undergoing daily temperature screening, frequent environmental cleaning and disinfection, wearing masks in the airport and for the duration of the flights, wearing gloves when handling travellers’ personal belongings, regularly washing hands, and providing safety amenities to passengers.

Col Siviengthong Konnyvong, CEO of Lao Skyway, spoke of the company’s pride at achieving the SafeFlight accreditation.

“Lao Skyway is extremely proud of earning the LaoSafe certification. Tourists can be assured that their travels in Laos abide by the highest hygiene standards,” he remarked.

Flights connecting Hanoi, Vietnam, and Chiang Mai, Thailand, with the UNESCO World Heritage town of Luang Prabang will be available in the coming months. Lao Airlines has also increased the frequency of its popular route between Vientiane and Seoul, a firm favourite for Korean tourists, as well as an important transit link for other long-haul travellers. Lao Airlines also offers flights to and from major regional destinations such as Bangkok, Ho Chi Minh City, and Siem Reap.

Implemented by the Ministry of Information, Culture and Tourism, and approved by the Ministry of Health, LaoSafe is a nationwide initiative designed to create a world-class health and hygiene system within the tourism and hospitality industry.

Sector-specific standards have been developed for accommodation, food and beverage, tour guides, and drivers, to raise the benchmark of hygiene provision throughout the country and to build international confidence in Laos as a safe tourist destination.

Lao Skyway flies to ten destinations throughout Laos, including major cities such as Vientiane, Luang Prabang, and Pakse, where tourists can find plenty of LaoSafe-certified hotels and restaurants. Flights are also available to and from Oudomxay and Xieng Khouang, two fast-growing provinces that became hotspots among local travellers during the Lao Thiao Lao domestic tourism campaign.

The LaoSafe programme is supported by the Skills for Tourism Project (LAO/029), which is co-financed by the governments of the Lao PDR, the Grand Duchy of Luxembourg and Switzerland, and implemented by the Ministry of Education and Sports of Laos and LuxDev, the Luxembourg Development Cooperation Agency.

For further information, visit https://laosafe.gov.la. For all media enquiries, additional comments, or requests for interviews, please contact media@laosafe.gov.la.
Hashtag: #LaoSafe

36 People, Including 24 Children Killed at Mass Shooting in Thailand

At least 36 people were reported dead at a mass shooting in Na Klang district, located in Thailand’s northeastern province of Nong Bua Lamphu.

The Great Resignation: The Impact on APAC’s CXOs

75% of APAC’s business leaders will be looking for new career prospects in the following months

SINGAPORE – Media OutReach – 6 October 2022 – Sparked by the global pandemic, the Great Resignation has already been happening among the C-suite in Asia Pacific for the last 2 years. In latest studies from The Page Executive Asia Pacific Talent Trends 2022 Report – The Great X, there has been a wave of resignations amongst senior leadership in Asia Pacific as over one-third of leaders polled (36%) have been at their current jobs for not more than two years. Our research also found that 75% of leaders will be looking for new career prospects over the next few months. We have to prepare for the wave of resignations to intensify with the clear majority indicating a major talent migration event is upon us in coming months.

While salaries, bonuses and rewards are still top attraction motivators for all candidates, including those in leadership roles, our survey shows a big swing towards non-monetary motivators. These are becoming increasingly important to candidates when deciding on the company to join.

Anthony Thompson, Regional Managing Director of PageGroup Asia Pacific

Anthony Thompson, Regional Managing Director of PageGroup Asia Pacific

Anthony Thompson, Regional Managing Director of PageGroup Asia Pacific says, “Human capital is one of the most in-demand resources right now, and we see demand far outstripping supply across many sectors in APAC. While remuneration continues to be important to leadership candidates, it is not the only reason that people join or stay with an organisation. They are now asking about a company’s culture, purpose and values, and leadership.”

“Now, more than ever, all employees want a choice of where and how they want to work, so employers are faced with redesigning the playbook in a more human-centric way. The challenge for leaders is to recognise that there is no one-size-fits-all strategy — it will require a delicate balancing act between the needs of the business and the needs of individuals and teams. Giving employees some degree of choice and regularly engaging with them will be key,” Anthony Thompson continues.

There is a significant group of leaders who are unhappy. 86% of the respondents across Asia Pacific believe that their company does not take active steps to ensure work-life balance. In a talent-short market, companies cannot afford their exit, rejection, or negative word-of-mouth.

Increasingly, hiring leads and HR personnel are recognizing that while competitive salaries and career progression are key drivers in employee retention, it is just as important to pay attention to the so-called “soft” motivators. Flexibility could be the key for talent retention in this day and age. 64% of leaders surveyed said they would sacrifice money for more happiness, better well-being, and work-life balance — and this was consistent across all generations, gender, sexual orientation and industries.

Having been thrown into a hybrid or remote work model for over two years, employees across APAC do not want to return to the office-only model of pre COVID days. When job searching, 71% of leaders — want a hybrid work arrangement between working from home and the office. Companies looking to implement hybrid work models for the long-term also need to consider strategies to boost employee engagement and provide employees with the right tools to conduct remote work smoothly.

Editor’s note: The Page Executive Asia Pacific Talent Trends 2022 Report – The Great X features insights and market sentiment in Asia Pacific on prominent recruitment and talent-related topics including flexible work, mental health, employee well-being as well as Diversity, Equity & Inclusion (DE&I). The results draw from a survey of 15 major industries covered in 12 APAC markets.

About our research data –

  • Over 3,500 respondents: A representational mix of CEOs, board members, founders and senior leaders from MNCs, local corporations and start-ups.
  • Industries covered: Business Services; Energy & Natural Resources; Financial Services; FMCG; Healthcare & Pharmaceuticals; Industrial & Manufacturing; Insurance; Leisure, Travel & Tourism; Media & Agency; Non-profit Organisations; Property; Public Sector; Retail; Technology & Telecoms; and Transport & Distribution.
  • Markets covered: Australia, Hong Kong, India, Indonesia, Japan, Mainland China, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.

Hashtag: #PageExecutiveAsiaPacific

Shakura’s Miroko® Whitening Treatment is A 3rd Time Winner Of HerWorld Spa Awards

SINGAPORE – Media OutReach – 6 October 2022 – The Miroko® Whitening Treatment by Shakura has been crowned the Best Anti-Pigmentation Facial in Singapore 2022. This marks the third time it has won the coveted award from HerWorld since 2018.

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This signature facial treatment is no stranger to awards, winning prestigious accolades from Superbrands, Daily Vanity, and Blissful Brides. It has also enjoyed extensive media mentions and reviews in CNA Lifestyle, TheSmartLocal, 8 Days, GirlStyle, and Daily Vanity.

Try Out The Best Anti-Pigmentation Facial In Singapore

Customers can look forward to visible results within 90 minutes when they try out the award-winning Miroko® Whitening Treatment. It targets a wide range of pigmentation and skin concerns like freckles, melasma, age spots, acne marks, sun spots, and dull and uneven skin tone. The treatment is also the first in Singapore to provide professional anti-pigmentation solutions without the use of invasive methods.

Specifically designed for Asian skin, which is more prone to pigmentation, the treatment was formulated in Japan with the Shakura Active Formula, infused with natural ingredients like Milk Essence and Roselle Extract to help reveal a brighter and radiant complexion.

Celeb-Approved Anti-Pigmentation Facial Suitable For Everyone

Shakura’s brand ambassador, local celebrity Ya Hui, has endorsed Shakura for four consecutive years. This long-standing partnership shows the consistency and trust of Ya Hui, who has been praised in the media for her youthful complexion and looks— a testament to Shakura’s expertise.

Shakura is also reviewed and recommended by renowned beauty gurus Pauline Lan and Kevin Chou for two consecutive years on the “Ladies First Singapore” television programme.

Besides its star-studded line-up of celebrity ambassadors, Shakura has also helped over 60,000 satisfied customers achieve spotless, radiant skin and attracted many positive reviews. Non-invasive with zero downtime, it is suitable for all ages and skin types, making one’s dreams of luminous, glowing skin a reality.

Hashtag: #ShakuraPigmentationBeauty

About Shakura Pigmentation Beauty

Shakura, the Whitening & Pigmentation Specialist from Japan, has been providing customised skincare solutions to customers with troubled skin in Singapore. Formulated with pigmentation concerns in mind, Shakura’s signature facial treatment is infused with Milk Essence and Roselle Extract to lighten dark spots and brighten dull skin, nourishing the skin from within.

Social Media Channels:

Locations:

  • Plaza Singapura, #03-28
  • Westgate, #03-51
  • Lot One Shoppers’ Mall #02-21A/B/C
  • Heartland Mall, Level 2
  • Junction 8, #02-28/29
  • Tampines 1, #05-17

Malaysians Escape Job Syndicate with Help from Lao Locals

The Malaysians return to their country after escaping a job syndicate in Laos. Photo Credit: Free Malaysia Today

Eight Malaysian citizens were recently able to escape from the clutches of a job syndicate located in the Golden Triangle Special Economic Zone (GTSEZ) of Bokeo province, with assistance from Lao locals who dug a tunnel in their town to help them flee.