Hong Kong Office Vacancy

Hong Kong Office Vacancy Stabilised In Aug

HONG KONG – The overall office vacancy rate in the Chinese territory remained the same at 12.8 percent at the end of August compared to July, stabilising after four months of increase, according to Jones Lang LaSalle’s (JLL) latest Hong Kong Property Market Monitor.

While the office vacancy level in Central rose to 9.9 percent from 9.6 percent previously and that in Hong Kong East edged up from 12.7 percent to 12.8 percent, other office submarkets saw a decline. That in Wanchai / Causeway Bay fell from 10.2 percent to 9.6 percent, whereas that in Tsim Sha Tsui dropped from 11 percent to 10.3 percent. The office vacancy rate in Kowloon East also slid from 20.2 percent 19.5 percent over the same period.

JLL said the Hong Kong’s overall office market registered a positive net absorption of 229,800 sq ft in August versus a negative net absorption of 224,600 sq ft in the preceding month.

“Among the handful of new lettings, the Hospital Authority leased around 100,000 sq ft (GFA) at Harbourside HQ in Kowloon Bay to relocate from the same district,” noted the property consultancy.

However, average overall net effective office rent in the city dipped by 0.7 percent to HK$53.4 psf per month in August from HK$53.8 psf per month in July.

“Among the major office submarkets, Central and Wanchai / Causeway Bay witnessed rental drops of 0.8 percent and 0.3 percent, respectively, while Tsim Sha Tsui saw a rise of 0.6 percent,” JLL added.

Furthermore, the real estate consultancy revealed that an office unit on the top floor of Bank of America Tower in Central changed hands for HK$58.5 million or HK$30,139 psf based on its gross floor area. The office property was acquired by Winland Group, which plans to use it for its own occupation.

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