Office market posts positive net absorption in February
This is the first time after three consecutive months of negative absorption.
The overall office market recorded positive net absorption of 16,900 square feet last month, the first time after three consecutive months of negative absorption.
"The overall vacancy rate climbed to 12.3% as of end-February, partly due to the completion of S22 in Wong Chuk Hang by Empire Group. The office leasing market continued to improve; we received more leasing enquiries from insurance and financial institutions,” Alex Barnes, Managing Director at JLL in Hong Kong, said.
“We also saw more tenants looking for new office buildings to upgrade their workplace, which could help to absorb new office supply."
The overall net effective rents dropped by 0.7% m-o-m last month. Among the major office submarkets, rentals in Central and Wanchai/ Causeway Bay dropped by 0.8% and 1.2%, respectively, whilst Tsimshatsui's rent remained flat.