Office market sees positive net absorption of 9,100 sq ft in December
This marks the third month of positive net absorption.
The Grade A office market saw a positive net absorption for the third consecutive month, reaching 9,100 square feet (sq ft) n December 2021.
JLL in its latest Hong Kong Property Market Monitor attributed the expansion to the improvement of occupier demand for premium office space.
At the end of 2021, the overall vacancy rate stood at 9.6%. Amongst major submarkets, Kowloon East recorded the highest vacancy rate at 13.3%.
Meanwhile, overall net effective rents grew 0.2% month-on-month.
Alex Barnes, Head of Agency Leasing at JLL in Hong Kong, said the vacancy rate will “tick higher on the back of about five million sq ft of new office supply slated for completion.”
“We expect that overall office rents will buck this addition of new supply and rise 0-5% this year with improving business sentiment,” Barnes added.