Assessment of office market in Hong Kong decentralized district versus CBD: Boom and gloom

doi:10.1108/02637470410532385

Login

Welcome:
Guest

Search for:

Browse:

Resources:

Our site has recently been upgraded & the page you requested has moved, so we have redirected you to the new location. Please amend your bookmarks.

Property Management

ISSN: 0263-7472

Online from: 1983

Subject Area: Built Environment

Content: Latest Issue | Latest Issue RSS | Previous Issues

Options: To add Favourites and Table of Contents Alerts please take a Emerald profile

Assessment of office market in Hong Kong decentralized district versus CBD: Boom and gloom

Document Information:
Title:	Assessment of office market in Hong Kong decentralized district versus CBD: Boom and gloom
Author(s):	Eddie C.M. Hui, (Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Hong Kong), Raymond Y.C. Tse, (International City University of America and Hong Kong Institute of Real Estate, Hong Kong)
Citation:	Eddie C.M. Hui, Raymond Y.C. Tse, (2004) "Assessment of office market in Hong Kong decentralized district versus CBD: Boom and gloom", Property Management, Vol. 22 Iss: 2, pp.93 - 107
Keywords:	Decentralized control, Hong Kong, Office buildings, Space utilization
Article type:	Research paper
DOI:	10.1108/02637470410532385 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Abstract:	Office decentralization has been developing rapidly in Hong Kong since the early 1980s. Office tenants relocated their businesses to the Decentralized District (DD) with the benefits of lower rent, higher flexibility of space use and better supporting facilities. This study examines office decentralization in Hong Kong's office market, both the upturn and downturn. It analyzes the vacancy trend of the Grade A office market in Hong Kong: DD versus Central Business District (CBD), based on a Decentralization Index. This study found that the CBD is a more stable office market sector than the non-CBD. During a market upturn, the Grade A office market in Hong Kong DD has outperformed that in the CBD. However, during a market downturn, the vacancy rate in the DD tends to increase at a greater rate than that in the CBD. The study also found that periods with a sufficiently high index of decentralization generally experienced increases in CBD rent premiums.