Kowloon's offices see the most significant improvement in vacancy rate in October
Overall office rents fall by 0.5% m-o-m only
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
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