According to a report released by Jones Lang LaSalle (JLL), the overall vacancy rate in Hong Kong's Grade A office market has declined for a fifth consecutive month, dropping to its lowest level since May 2023, with leasing activity in Central and Tsim Sha Tsui serving as the primary drivers.
Data shows that as of the end of September, the overall Grade A office vacancy rate fell by 0.1 percentage point month-on-month to 12.4%. By district, Central recorded the most notable improvement, with its vacancy rate declining from 7.8% in August to 7.2%. Tsim Sha Tsui continued to see improving occupancy rates. Wan Chai/Causeway Bay posted the largest increase in vacancy rate, rising 0.6 percentage points month-on-month, while Island East and Kowloon East each recorded a 0.2 percentage point increase.
Alex Barnes, Head of Commercial Leasing at Jones Lang LaSalle (JLL) Hong Kong, said the Hong Kong Grade A office market recorded positive net absorption of 245,800 square feet in September. As leasing activity concentrated in premium office buildings in Central and Tsim Sha Tsui, with an increasing share flowing to new commercial tower projects in West Kowloon, vacancy rates at the highest-quality office buildings continued to decline.
Cathie Chung, Senior Director of Research at Jones Lang LaSalle (JLL), added that overall office rents rose 0.7% month-on-month in September, driven mainly by rental growth in Central, where rents increased 1.6% month-on-month. Apart from Kowloon East, where rents fell 0.6% month-on-month, rents in other major office districts remained broadly stable.
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