Grade A office market records negative net absorption as of end-September

Overall vacancy rate stabilised at 13.4%.

The Grade A leasing market posted a negative net absorption of 57,500 square feet (sq. ft.) in September due to a lack of sizable transactions, according to JLL. 

In the same month, the overall vacancy rate remained at 13.4% compared the previous month. Per area, vacancy in Central rose to 12.2% month-on-month (MoM), whilst those in Wanchai and Tsim Sha Tsui increased to 10.3% and 9.4% MoM, respectively. 

Meanwhile, vacancy in Hong Kong East declined to 12.4%.

"Additionally, new office buildings continued to attract tenants looking to upgrade their workplaces," said Bruce Pang, head of Research at JLL in Greater China.

For instance, Arrowpoint Investment Partners has leased one floor of 7,600 sq. ft. at Six Pacific Place in Wanchai.

Last month's overall net effective rent decreased further by 1.1% MoM, said Cathie Chung, senior director of Research at JLL. 

"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," Chung said.