Central Grade A office market net take-up jumps to 369,00sf in 1Q15

Overall vacancy also improved.

The property consultant Jones Lang LaSalle (JLL) has said that leasing activity in Hong Kong’s Grade A office market gained momentum in 1Q15.

According to a research note from Barclays, net take-up in the overall market reached 369,00sf in 1Q15, offsetting 75,000sf net withdrawals recorded in 4Q14.

Overall vacancy improved by tightening 0.1ppt q/q to 4.1% as of end-1Q15 and overall rent rose 0.8% q/q.

Here's more from Barclays:

In particular, Central recorded a net take-up of 133,000sf in 1Q15 compared to a negative take-up of 35,000sf in 4Q14.
Central vacancy also improved, tightening 0.5ppt q/q to 3.2% as of end-1Q15 and Central rent rose 1.3% q/q.

JLL said that demand in Central was led by a more stabilised banking sector and the steady growth of financial services companies, especially those from China.

Insurance companies also saw expansion as Prudential and AXA expanded their operations during the quarter and others were actively looking for space at the end of March.