Office net effective rents drop 0.6% MoM in October

Across submarkets, Central posted the largest drop in rents.

The office sector saw a 0.6% MoM drop in overall net effective rents in October, data from JLL showed.

Amongst the major office submarkets, Central registered the largest drop in rents, declining 0.6%, followed by Wanchai / Causeway Bay (-0.2% MoM) and Tsimshatsui  (-0.1% MoM).

As rents dropped, vacancy rose to 11.0% in October. According to JLL, the completion of Two Taikoo Place in Quarry Bay and 1 Sha Tsui Road in Tsuen Wan drove the vacancy rate increase.

Vacancy rates also rose in Central and Wanchai / Causeway Bay to 8.4% and 9.7%, respectively.

New completions in October also pushed the overall net absorption to 479,000 sq ft.