Four out of five major business districts see vacancy rate improvements in May
Grade A office market records positive net absorption
HONG KONG, 18 June 2025 – The overall Grade A office market continued to improve in May, with vacancy rates dropping in four out of five major business districts in Hong Kong, according to JLL's latest Hong Kong Monthly Market Dynamics released today.
China Merchants Plaza in Sheung Wan was completed last month, adding 142,700 sq ft of net floor area to the market. Despite this new addition, the overall office vacancy rate improved to 13.6%, with most submarkets showing improvements. Vacancy rates in Central and Tsimshatsui fell to 11.6% and 7.8%, respectively. In contrast, the vacancy rate in Hong Kong East increased to 14.2%. The overall leasing market recorded a positive net absorption of 192,000 sq ft in May.
Alex Barnes, Managing Director at JLL in Hong Kong, said: "We are seeing improvements in the Hong Kong office market, with some firms taking advantage of current conditions to secure quality spaces."
Notably, OKX Hong Kong FinTech Company Limited leased one floor of 36,000 sq ft (GFA) at AIRSIDE in Kai Tak.
Cathie Chung, Senior Director of Research at JLL, said: "Office rents continued their downward trend in May, registering a slight m-o-m decrease of 0.3%. Hong Kong East experienced the most significant decline at 1.0%, followed by Kowloon East with a drop of 0.7%. Central and Wanchai/Causeway Bay saw decreases of 0.4% and 0.2%, respectively."
| Grade A Office Vacancy Rates | ||||||
|---|---|---|---|---|---|---|
| Period | Overall | Central | Wanchai / Causeway Bay | Hong Kong East | Tsimshatsui | Kowloon East |
| End-May 25 | 13.6% | 11.6% | 9.0% | 14.2% | 7.8% | 20.9% |
| End-April 25 | 13.7% | 11.7% | 9.2% | 14.0% | 7.9% | 21.0% |
Source: JLL Research
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