News release

Grade A office market records negative take-up in September

Overall net effective rents drop 1.1% m-o-m

October 24, 2024

Yvonne Liu

Public Relations Director, Hong Kong and Macao
+852 2846 5264

HONG KONG, October 24, 2024 – The overall Grade A office leasing market recorded a negative net absorption of 57,500 sq ft in September due to a lack of sizable transactions, according to JLL's latest Hong Kong Property Market Monitor released today.

Bruce Pang, Head of Research at JLL in Greater China, said: "Vacancy rates in Central increased to 12.2% as at the end of September, while those in Wanchai / Causeway Bay and Tsimshatsui rose to 10.3% and 9.4%, respectively. However, the overall vacancy rate remained at 13.4% due to improvements in Hong Kong East and Kowloon East. Additionally, new office buildings continued to attract tenants looking to upgrade their workplaces."

For example, Arrowpoint Investment Partners has leased one floor of 7,600 sq ft (LFA) at Six Pacific Place in Wanchai, relocating from their previous flex space.

Cathie Chung, Senior Director of Research at JLL, said: "In September, the overall net effective rent decreased by 1.1% on a m-o-m basis. Central and Kowloon East experienced further rent declines of 1.6% and 0.7%, respectively. Rents also fell in the Wanchai / Causeway Bay and Hong Kong East submarkets, dropping by 0.4% and 0.8%, respectively."

Grade A Office Vacancy
Period Overall Central Wanchai /Causeway Bay Hong Kong East Tsimshatsui Kowloon East
End-Sept 24 13.4% 12.2% 10.3% 12.4% 9.4% 18.5%
End-Aug 24 13.4% 12.1% 10.0% 12.9% 9.0% 18.8%

Source: JLL Research


About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.