Hong Kong Central Grade A office rents rise as demand lifts prime buildings

The vacancy rate at the end of October stood at 13.1% across the market.

Central Grade A office rents in Hong Kong rose 0.1% in November, marking the first monthly increase since May 2022.

JLL said stronger occupancy in prime buildings has given landlords more bargaining power as tenant activity improves.

The firm pointed to expansion, consolidation, and flight to quality moves as the main drivers of recent leasing interest.

One notable deal involved Migao Group Holdings, which leased 10,201 sq ft (GFA) at Cheng Kong Center II in Central, relocating from COFCO Tower in Causeway Bay.

The vacancy rate at the end of October stood at 13.1% across the market. Central recorded 11.5%, up 0.5 percentage points, due to relocation space. Wanchai and Causeway Bay posted 10.5%, Hong Kong East 12.8%, Tsimshatsui 7.5%, and Kowloon East 19.9%.

Net absorption reached 293,300 sq ft in October. JLL reported that overall rents were broadly flat MoM across the major submarkets, with movements varying by district.