JLL: Leasing demand from educational institutions active; Hong Kong office vacancy rate fell 0.3 percentage points month-on-month in August.

Jones Lang LaSalle (JLL) published a report noting that, as the Hong Kong SAR government continues to promote Hong Kong as an international education hub, educational institutions have become more active in the office leasing market, providing support for leasing demand in non-core business districts. In August, the overall office vacancy rate improved slightly, falling 0.3 percentage points month-on-month to 12.5%. Among specific districts, the vacancy rates in Tsim Sha Tsui and Kowloon East improved slightly, each falling 0.3 percentage points month-on-month. Hong Kong Island East was the only exception, with its vacancy rate rising 1.1 percentage points month-on-month. In August, overall office rents rose 0.9% month-on-month, mainly driven by rental growth in Central, where rents increased 1.5% month-on-month. However, the pace of recovery across individual office submarkets remained uneven, with rents in Hong Kong Island East and Kowloon East both falling 0.3%. In terms of major leasing transactions, the Hong Kong University of Science and Technology expanded its back-office operations at Manulife Financial Centre Tower B in Kwun Tong, involving a floor area of approximately 24,000 square feet. Meanwhile, it is understood that the Chinese University of Hong Kong also leased six floors at Shenzhen New Land Tool Planning & Architectural Design Central Plaza in Sha Tin, with a total gross floor area of 113,000 square feet, for teaching and administrative purposes.