Net take-up of Grade A office improves in August
Vacancy rates in Hong Kong East and Tsimshatsui improve
HONG KONG, September 25, 2024 – The overall Grade A office leasing market saw improvement in August, with a positive absorption of 335,100 sq ft. It is the highest monthly net take-up level so far this year, according to JLL's latest Hong Kong Property Market Monitor released today.
The overall vacancy rate retreated from 13.7% to 13.4% as at the end of August. Vacancy rates in Central rose to 12.1%, while those in Tsimshatsui and Kowloon East fell to 9.0% and 18.4%, respectively. Vacancy in Wanchai / Causeway Bay remained steady.
Alex Barnes, Managing Director and Head of Office Leasing Advisory at JLL in Hong Kong, said: “We began to see major occupiers making real estate decisions. The large leasing transactions drove up the net take-up rate last month. Leasing demand continues to be driven by cost-saving and upgrading requirements. These factors contributed to the improving vacancy rates in Hong Kong East,”
Notably, ICBC (Asia) leased an office space with a total gross floor area of around 145,000 sq ft at The Harbourfront One in Hung Hom, primarily relocating their operations from Kwun Tong.
"In August, the overall net effective rent decreased by an additional 1.3% on a m-o-m basis. Central and Kowloon East saw further rent declines, dropping 1.5% and 1.8%, respectively. Rents also fell in the Wanchai / Causeway Bay and Hong Kong East submarkets, declining by 0.6% and 2.2%, respectively," said Cathie Chung, Senior Director of Research at JLL.
| Grade A Office Vacancy | ||||||
|---|---|---|---|---|---|---|
| Period | Overall | Central | Wanchai / Causeway Bay | Hong Kong East | Tsimshatsui | Kowloon East |
| End-Aug 24 | 13.4% | 12.1% | 10.0% | 12.9% | 9.0% | 18.8% |
| End-July 24 | 13.7% | 12.0% | 10.0% | 13.1% | 9.3% | 18.8% |
Source: JLL Research
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