265 views
Photo by Joe Cooke on Unsplash

Grade A office vacancy rate rises to 12.1% in December 2022

New completions pushed the vacancy rate up.

The vacancy rate of Grade A offices rose to 12.1% by the end of last year on the back of new completions in non-core areas, JLL reported.

Based on JLL’s latest Hong Kong Property Market Monitor, vacancy rates increased across all submarkets.

In Central and Wanchai/Causeway Bay, the vacancy rate marginally rose to 8.8% (vs 8.7%) and 10.2% (vs 10.1%), respectively.

Meanwhile, vacancy rates increased to 11.1% in Hong Kong East, 11.0% in  Tsim Sha Tsui, and 19.5% in Kowloon East. 

As vacancy rose, net effective rents dropped by 0.4% MoM, whilst net absorption was -116,900 sq ft.

Whilst 2022 ended negatively, JLL believes the office market will see an obvious improvement in the second half of 2023.

"Leasing sentiment in the retail market remained soft in December last year and transactions in core areas were mainly short-term leases. However, Hong Kong's retail market will see the most noticeable improvement in the property sector since mainland China has reopened its borders. The leasing activities in the retail market will rebound this year, and market interest in core areas is expected to return,” Nelson Wong, Executive Director of Research at JLL, said.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

‘Wall-less’ office tears down barriers to collaboration amongst AnyMind’s creatives
The office opens up for employees to collaborate, relax, feed off one another’s energy, and enjoy ‘happy hour’ and ‘mental space.’
Auction houses thrive on Asian millennials’ art-buying power
Millennials are seen to be particularly drawn to contemporary art as growth for Christie’s, Sotheby’s, and Phillips are highly anticipated in art hubs Hong Kong and Singapore.
Hong Kong’s livi bank launches game-changing app for SMEs
Going fully digital on opening accounts and approving quick loans to SMEs raises ‘livi Business’ disbursements to over HK$70m (US$8.9m) as of end-April.