Grade A offices log 313,800 sq ft net take-up in August

Overall Grade A office rents falling just 0.2% MoM, the slowest rate of decline so far in 2025.

Hong Kong’s Grade A office market saw a net absorption of approximately 313,800 square feet in August, as leasing demand strengthened on the back of a buoyant IPO pipeline and growing wealth management activity, according to JLL.

JLL noted that increased demand from financial institutions and professional services firms contributed to the positive momentum, with tenants favouring premium space in core districts.

Despite the uptick in leasing, the overall vacancy rate edged up slightly to 13.5% in August, attributed to new supply from One Causeway Bay.

This was partially offset by strong take-up in existing buildings. Central and Tsimshatsui saw vacancy rates improve to 11.2% and 7.6%, respectively.

In contrast, Wanchai/Causeway Bay registered a sharper increase, with vacancy rising from 9.6% to 12.2%.

Rental declines moderated, with overall Grade A office rents falling just 0.2% MoM, the slowest rate of decline so far in 2025.

Hong Kong East experienced the steepest drop at 0.6%, followed by Kowloon East at 0.3%, while Central saw a marginal decrease of 0.1%.

Among notable transactions, Jun He Law Offices leased an entire floor (14,830 sq ft) at AIA Central, reinforcing continued interest in prime office locations.