JLL: Hong Kong Grade A office vacancy rate falls for five consecutive months, dropping to 12.4% month-on-month in September

Jones Lang LaSalle (JLL) published a report noting that the overall vacancy rate in Hong Kong's Grade A office market has fallen for a fifth consecutive month, dropping to its lowest level since May 2023, with office leasing activity in Central and Tsim Sha Tsui as the main drivers. Data showed that as of the end of September, the overall Grade A office vacancy rate fell 0.1 percentage point month-on-month to 12.4%. By district, Central showed the most significant improvement, with the vacancy rate falling from 7.8% in August to 7.2%; Tsim Sha Tsui's occupancy rate continued to improve; Wan Chai/Causeway Bay saw the largest increase in vacancy rate, up 0.6 percentage point month-on-month; Island East and Kowloon East each rose 0.2 percentage point. Alex Barnes, Head of Commercial at JLL in Hong Kong, said the Hong Kong Grade A office market recorded positive net absorption of 245,800 sq ft in September. As leasing activity concentrated in premium offices in Central and Tsim Sha Tsui, with an increasing share flowing to new office projects in West Kowloon, the vacancy rate for the highest-quality offices continued to decline. Cathie Chung, Senior Director of Research at JLL, added that overall office rents rose 0.7% month-on-month in September, mainly driven by rent growth in Central, where rents rose 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.