Hong Kong Grade A offices see 44,200 sq ft uptake in June

The increase in take-up was largely driven by financial institutions, which remained active in the leasing market.

Hong Kong’s Grade A office market recorded a positive net absorption of 44,200 square feet in June, reflecting a modest rebound in tenant demand, according to JLL’s latest Hong Kong Monthly Market Dynamics report.

The increase in take-up was largely driven by financial institutions, which remained active in the leasing market.

According to Alex Barnes, Managing Director of JLL for Hong Kong, Macau, and Taiwan, firms from the FIRBES sectors (finance, insurance, real estate, business, and professional services) accounted for 57.5% of total leasing volume in the first half of the year.

One notable deal in June was TPG Sixth Street Partners’ lease of 10,000 square feet at One Exchange Square in Central.

Despite the positive take-up, office rents continued to decline, with an overall month-on-month drop of 0.5%. The most significant decline was observed in Hong Kong East (-2.1%), followed by Kowloon East (-0.6%) and Central (-0.1%).

Vacancy trends were mixed across submarkets. The overall vacancy rate held steady at 13.6% at the end of June. Improvements were recorded in Hong Kong East (13.6%, down from 14.2%) and Kowloon East (20.7%, down from 20.9%).

However, vacancy rates rose slightly in Central (11.8%) and Wanchai/Causeway Bay (9.5%).