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Hong Kong Hedge Fund Real Estate Update: Is Central Still Hedge Fund Heaven?

By Kulvinder Gill,
Thursday, June 14th, 2018

Hong Kong’s Central District is a bustling location with gleaming skyscrapers and is home to about 90% of Hong Kong hedge fund offices. However, Hong Kong is once again the world’s highest-priced office market according to CBRE’s semi-annual Global Prime Office Rents survey.

So, is there another location hedge funds are considering?

Locations such as Victoria Harbor and Sheung Wan are set to be favourites amongst managers due to their lower real estate costs. In fact, these areas have already attracted some big names in the hedge fund space.

However, as the CBRE survey says, "Hong Kong Central’s position as the most expensive office market continues to be bolstered by its status as a leading global financial center. Although financial institutions have become more cost sensitive, with some considering relocating to less expensive space outside the CBD, high-quality and premium space is still sought after, especially by mainland Chinese firms which are increasingly setting up their offices in Hong Kong (Central) in prestigious buildings."

Only time will tell if Central will maintain its stronghold or if hedge funds will be attracted to less expensive space outside Central.

The Top 10 List

Below is CBRE's top 10 most expensive list (in US$ per sq. ft. per annum) as of June 2017:

1

Hong Kong (Central), Hong Kong

   269.26

2

Beijing (Finance Street), China

174.07

3

Hong Kong (West Kowloon), Hong Kong

163.57

4

New York (Midtown Manhattan), U.S.

153.50

5

Beijing (CBD), China

151.87

6

London (West End), United Kingdom

136.38

7

Tokyo (Marunouchi/Otemachi), Japan

132.09

8

Shanghai (Pudong), China

120.11

9

New York (Midtown-South Manhattan), U.S.

113.53

10

New Delhi (Connaught Place - CBD), India

110.85


To learn more about real estate options for hedge funds and alternative investment firms, check out the following articles:

 

 

Categorized under: Real Estate 



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