Grade A office market posts net absorption of 248,000 sq ft in April

Office market growth lowered overall vacancy to 13%.

Overall Grade A office market posted a positive net absorption of 248,000 sq ft in April, JLL reported.

JLL attributed the growth to the realisation of owner-occupied space with the completion of 1 Stubbs Road in Wanchai. New notable lettings include China Mobile Hong Kong's 47,400 sq ft lease at Kowloon Commerce Centre Tower A in Kwai Chung.

The improvement in the office leasing market reduced the overall vacancy rate to 13.0% in April, with vacancy rates in Grade A offices in Wanchai/Causeway Bay and Kowloon East dropping by 0.2 and 0.3 percentage points, respectively.

Meanwhile, vacancies in Central and Hong Kong East rose slightly by 0.1 and 0.3 percentage points, respectively, whilst vacancies in Tsimshatsui remained unchanged.

In addition, overall rents dropped 0.4% MoM in April from 0.7% in March. Rents in Central and Hong Kong East dropped 0.2% and 0.9%, respectively, whilst rentals in Tsim Sha Tsui and Kowloon East decreased 0.4%.