Office market overall net absorption hits 175,000 sq. ft. in Q3

Reversing Q2's -335,000 sq. ft.

In Hong Kong's office market, it has been noted that overall net absorption in Q3 2016 was 175,000 sq. ft. (NFA). 

According to a research note from CBRE, it reverses the -335,000 sq. ft. recorded for Q2 and bringing the y-t-d figure to 237,000 sq. ft. (NFA).

Further, vacancy in Greater Central (which includes Central, Admiralty and Sheung Wan) edged up 0.1% q-o-q to 1.7% in Q3, remaining at a low level.

Meanwhile, demand for space in and around Central continued to be driven by Mainland Chinese financial sector firms. Insurance companies remained active in Kowloon, and rents on Hong Kong Island continued to edge up; while Kowloon has experienced more significant rental pressure as vacancy increased. 

The report notes that the figures are preliminary and may be subject to change in the final report.