Hong Kong Office Vacancy Rises To 11.6% In End-Nov
HONG KONG – The overall office vacancy in the Chinese territory rose from 11 percent at the end of October to 11.6 percent at the end of November 2022, according to a report published by Jones Lang LaSalle (JLL) last week.
Based on the property consultancy’s latest Hong Kong Property Market Monitor, the uptick in the city’s office vacancy is due to the completions of Landmark South in Wong Chuk Hang at The Millennity at 98 How Ming Street in Kwun Tong.
In particular, the office vacancy in Central increased to 8.7 percent from 8.4 percent during the preceding month. At the same time, that in Wanchai / Causeway Bay climbed to 10.1 percent from 9.7 percent previously. The highest increase was seen in Kowloon East, where the office vacancy rate rose from 16.7 percent to 18.2 percent. The only office submarket that witnessed a dip in vacancy level was Tsim Sha Tsui, where the rate slid from 11 percent to 10.9 percent.
Moreover, overall net effective rents in Hong Kong declined by 0.7 percent to HK$55.5 psf per month at the end of November from HK$55.9 psf at the end of October. Comparatively, office rents in the city fell by 0.6 percent month-on-month in October 2022.
“Among the major office submarkets, rentals in Central and Wanchai / Causeway Bay both dropped by 0.6 percent, while rents in Hong Kong East registered a drop of 0.5 percent during the month,” noted the real estate consultancy.
Furthermore, overall net office absorption in Hong Kong stood at -44,400 sq ft at the end of November because of limited office rental activities towards year-end and more sizable office spaces became available in some submarkets. This is a sharp fall from the positive net office absorption of 479,000 sq ft at the end of October 2022.
“High-quality new supplies in decentralized areas continued to attract occupiers looking for more affordable and newer options. Notably, Konica Minolta Business Solution leased a whole floor (36,000 sq ft, GFA) at the newly completed AIRSIDE in Kai Tak. The tenant will relocate and upgrade from its previous location at Eastern Centre in Quarry Bay,” added JLL.
