Hong Kong’s Office Vacancy

Hong Kong’s Office Vacancy Slides To 12.6% In Oct

HONG KONG – Data from Jones Lang LaSalle (JLL) showed that the overall office vacancy in the Chinese territory declined marginally to 12.6 percent at the end of October from 12.7 percent during the previous month, reported Mingtiandi on Monday evening (27 November, SGT).

According to JLL’s latest Hong Kong Property Market Monitor, Kowloon registered the largest fall in office vacancy rates, with that in commercial hub Tsim Sha Tsui falling 0.4 percentage points to 9.5 percent. That in Wan Chai/Causeway Bay slid 0.3 percentage points to 9.8 percent, while that in Kowloon East edged down 0.1 percentage points to 19.1 percent.

JLL’s Head of office leasing advisory for Kowloon, Ken Tang, underscored the appeal of redeveloping Hong Kong’s eastern part, as would-be office tenants search for quality workspaces in the area, where the average rents are just 30 percent of Central.

“Kowloon East, in particular, with its diverse and high-quality office space options which cater to different preferences and requirements, is another popular option to tenants who are looking for large space for their main office,” Tang noted.

JLL figures also revealed that Grade A office occupants across Hong Kong leased 152,500 sq ft more than they relinquished in October, representing the third consecutive month of positive take-up.

However, the office vacancy level in Central and Hong Kong East both edged up by 0.2 percentage points to 9.8 percent and 13.3 percent respectively.

Nevertheless, JLL noted that the overall office vacancy level in Hong Kong stabilised in August at 12.8 percent after four straight monthly increases and has not risen since.

However, net effective monthly rents slid 0.5 percent month-on-month to an average rate of HK$52.60 psf. It also represents a 2.2 percent dip over a three-month period.

“Among the major office submarkets, Central and Wan Chai/Causeway Bay witnessed rental drops of 0.2 and 1 percent, respectively, while Tsim Sha Tsui’s rent remained firm,” added JLL’s Senior Research Director in Hong Kong, Cathie Chung.

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