HK records varying market dynamics in July

Overall office leasing market recorded a positive net absorption of 189,500 sq ft.

Hong Kong’s overall office leasing market recorded a positive net absorption of 189,500 square feet in July, as tenants capitalise on soft rental rates to upgrade office spaces, according to a JLL report.

Vacancies in Hong Kong East and Kowloon East improved to 13.4% and 20.2%, respectively. However, Causeway Bay recorded negative net absorption, with the vacancy rate rising to 9.6%.

As for the residential market, transaction volumes in the primary market decreased to 1,865 units, whilst those in the secondary market rose to 3,901 units.

This has resulted in an overall month-on-month marginal decline of 3.2%, with a more significant drop in total consideration of 24.1%.

Moreover, retail sales value stabilised, recording a modest 0.7% year-on-year increase in June.

Notably, the jewellery, watches, clocks, and valuable gifts category registered its first sales expansion since February 2024, rising by 6.8% YoY. Meanwhile, online sales grew 8.4%, with their contribution to total retail sales climbing to 8.5% during the month.

External trade growth moderated to 11.4% YoY in June, with imports and total exports climbing by 11.1% and 11.9%, respectively.

Total exports maintained double-digit expansion via land transport, whilst recording single-digit growth in the value of both air and ocean freight shipments.