Office net absorption hits 160,900 sq ft in February

Hong Kong East is emerging as a preferred destination with rents rising the fastest at 0.5%.

Net absorption in the office market hit 160,900 sq ft in February on the back of relocation and consolidation requirements, according to JLL Property Market Monitor.

Rents in the overall office market inched up 0.1% MoM which reflects the slowest pace of growth in one year. Hong Kong East is fast emerging as a preferred office area amidst tight vacancies in traditional CBDs as rents rose the fastest at 0.3% MoM.

Also read: Prime office rents extend run after rising 5.2% in Q4

Not to be outdone, net absorption in Central hit 62,400 sq ft with some notable transactions including the lease of two floors by The Executive Centre at Three Garden Road for a new location in the swanky business district.

Kering also pre-leased two whole floors sized 37,300 sq ft at One Taikoo Place in Quarry Bay as part of their consolidation outside Causeway Way whilst RGA Reinsurance relocated within Swire Properties’ Island East portfolio to accommodate its plans for expansion.

“Pricing in the strata-title office sales market remained strong despite fewer transaction amidst the holiday season,” said JLL head of research Dennis Ma. Notable transactions include the unit sale of Lippo Centre Tower 1 in Admiralty for $76m, achieving the third highest price in the building in terms of unit price.

Photo from Michal Osmenda from Brussels, Belgium - Panorama of Hong Kong Central from Victoria Peak, CC BY 2.0