Overall vacancy rate drops 29 bps to 3.4% at end-September

Fringe core registered the most notable drop.

The overall vacancy rate fell 29 bps from Q2 2013, to 3.4% at end-September.

According to CBRE's preview of the Hong Kong property market's Q3 2014 performance, the most notable drop was registered in fringe core (Admiralty and Sheung Wan, down 80 bps q-o-q) where improved occupancy levels were seen in non-A1 buildings.

Meanwhile, the office leasing market slowed down in Q3 2014, and the Mainland Chinese financial sector firms were the most active tenant group looking for space in Central and fringe core locations on Hong Kong Island.

Further, overall rents remained flat, with only Sheung Wan and Kowloon East saw improved occupancy levels.

The report noted, however, that the figures it presented are preliminary and may be subject to change in the final version.