HK Office Rents Down 0.3% In Nov
HONG KONG – Overall net effective rents in the city dipped by 0.3 percent month-on-month in November 2021 to HK$55.7 psf per month following a 0.2 percent uptick in the October, according to Jones Lang LaSalle’s (JLL) latest Hong Kong Property Market Monitor report that was published on Monday afternoon (20 December, SGT).
Among the major office submarkets, Hong Kong East and Tsim Sha Tsui saw rental growth In November, while Central recorded a slight rental drop after 3 straight months of rental increases, said the real estate consultancy.
As for the overall vacancy rate of Hong Kong’s office market, it slid to 9.6 percent during the month under review from 9.7 percent in October. Nonetheless, that for central remained unchanged at 7.9 percent. JLL said office leasing activity in the city’s traditional commercial hub primarily comprised smaller office spaces in November.
In Wanchai / Causeway Bay, the vacancy rate fell from 9.9 percent in October to 9.7 percent in November, while that in Tsim Sha Tsui increased from 10.1 percent to 10.4 percent over the same period.
In total, Hong Kong’s office market witnessed a net absorption of 47,800 sq ft in November. This marks the second consecutive month of positive figures after it registered a net absorption of 107,200 sq ft during the previous month.
“The leasing market remained active as occupiers continued to reconfigure their post-pandemic real estate requirements and look for quality in their office premises,” noted the real estate consultancy.
During the period under review, the office market saw sales involving Grade A strata-titled office space. For instance, Get Nice Holdings divested a low-level floor at Cosco Tower in Sheung Wan for HK$420 million (HKD 21,271 psf).
As for notable leasing deals, there were several in November. A low-zone office space at NEO spanning 10,000 sq ft was taken up at the high HK$10 psf per month range. A low-zone 17,600 sq ft office space The Gateway’s Tower 1 was leased at the mid HK$40 psf range, while a mid-zone office space measuring 23,000 sq ft in Two Harbourfront was rented at the low HK$20 psf range.