News release

Kowloon's offices see the most significant improvement in vacancy rate in October

Overall office rents fall by 0.5% m-o-m only

November 27, 2023

Yvonne Liu

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

HONG KONG, November 27, 2023 – The vacancy rate of Grade A offices in Kowloon recorded the most significant improvement among the major office districts in October, according to JLL's latest Hong Kong Property Market Monitor released today.

The overall vacancy rate of Grade A offices dropped slightly to 12.6% as at end-October. Tsimshaitsui's vacancy rate dropped a further 0.4 percentage points, the most significant among the business districts. Vacancy in Kowloon East also dropped slightly to 19.1%.

Ken Tang, Head of Office Leasing Advisory at JLL in Kowloon, said: "Last month, the overall market continued to record a positive net absorption of 152,500 sq ft. Notably, Kowloon's office market recorded the most significant improvement in vacancy rates, driven by the growing demand from tenants seeking affordable but quality office spaces. 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."

Among new lettings, Puma leased a total GFA of about 37,500 sq ft at AIRSIDE in Kai Tak to relocate from Kowloon Bay.

Cathie Chung, Senior Director of Research at JLL, said: "Overall net effective rent retreated by 0.5% m-o-m last month. Among the major office submarkets, Central and Wanchai/Causeway Bay witnessed rental drop of 0.2% and 1.0%, respectively, while Tsimshatsui's rent remained firm."

Grade A Office Vacancy
Period Overall Central Wanchai / Causeway Bay Hong Kong East Tsimshatsui Kowloon East
End-Oct 23 12.6% 9.8% 9.8% 13.3% 9.5% 19.1%
End-Sept 23 12.7% 9.6% 10.1% 13.1% 9.9% 19.2%

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 $20.9 billion and operations in over 80 countries around the world, our more than 105,000 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.