Demand for co-working spaces went up in February

Knight Frank said the volume of new letting sales doubled in Kowloon.

Amidst border reopening, leasing demand for Grade A office market in Hong Kong has stronger activities in February but transactions has yet to grow.

In a statement, Knight Frank said there is increasing demand for small and medium-sized space for the co-working sector that boosts expansion of co-working operations.

Leasing demand from Chinese mainland firms especially after the borders reopened, Knight Frank said.

In Kowloon, leasing sentiment also improved with volume of new letting transactions in February doubled month-on-month.

"Kowloon East is the focus of the market, with shipping, logistics, and electronics firms the key demand drivers in January and February, followed by IT companies and co-working operators," said Knight Frank.

Demand from co-working operators also increased, similar to the situation on Hong Kong Island. Occupancy for certain co-working spaces in Kowloon were above 90%.

"Overall, we expect office rents to move slightly upwards in the near term as demand from various sectors continues to provide momentum," said Knight Frank.