Overall Grade A office market records negative net absorption in March
Education sector emerged as an active player in office leasing market
HONG KONG, April 17, 2025 – The overall Grade A office leasing market recorded a negative net absorption of 63,100 sq ft in March after the positive net absorption recorded in February, according to JLL's latest Hong Kong Monthly Market Dynamics released today. This is primarily due to significant spaces re-entering the market following previous consolidations and relocations.
Vacancy rates of the major business districts were relatively stable last month. Central and Hong Kong East’s vacancies remained steady, while the vacancies in Wanchai / Causeway Bay and Tsimshatsui improved, decreasing by 0.1 and 0.6 percentage points, respectively. In contrast, Kowloon East’s vacancy rate rose to 21.3% mainly due to the new completion - THE CENDAS in Kowloon Bay.
Sam Gourlay, Head of Office Leasing Advisory at JLL in Hong Kong Island, said: “Overall vacancy rates increased to 13.7%, largely due to the stock adjustments. The volume of leasing activities has however been strong, with the education sector emerging as another active occupier group alongside that of financial and related sectors.”
Notably, Tung Wah College Kwai Hing Campus (KHC) leased one floor with a total Gross Floor Area of 21,500 sq ft at Kowloon Commerce Centre Tower A in Kwai Hing to expand from Tower B.
Cathie Chung, Senior Director of Research at JLL, said: "Overall Grade A office rents continued to drop last month, with a slight m-o-m decrease of 0.6%. Central and Wanchai / Causeway Bay both experienced modest rental decreases of 0.2% and 0.4% respectively. Meanwhile, Hong Kong East experienced the most significant drop, with rents falling by 1.2%. Kowloon East also saw a rental decline of 0.2%.”
| Grade A Office Vacancy Rates | ||||||
|---|---|---|---|---|---|---|
| Period | Overall | Central | Wanchai /Causeway Bay | Hong Kong East | Tsimshatsui | Kowloon East |
| End-March 25 | 13.7% | 11.5% | 9.5% | 13.2% | 8.3% | 21.3% |
| End-Feb 25 | 13.3% | 11.5% | 9.6% | 13.2% | 8.9% | 18.8% |
Source: JLL Research
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