Hong Kong office net effective rents dip 0.2% in January

And vacancy rate rose to 12.2% during the month.

According to a recent JLL report, the overall net absorption was -16,900 sq ft in January due to limited leasing activities during the Chinese New Year. 

Among a handful of new lettings, IT solutions company Nexify leased one floor (12,600 sq ft, GFA) at the newly completed project The Millennity in Kwun Tong. The company will relocate and upgrade from COS Centre in the same district. 

Here’s more from JLL:

The overall vacancy rate edged up to 12.2% as at end-January. The vacancy rate in Central and Wanchai / Causeway Bay rose marginally to 8.9% and 10.3%, respectively, while Hong Kong East's vacancy rate retreated to 11.0%. 

Overall net effective rents dropped by 0.2% m-o-m in January. Among the major office submarkets, rentals in Central and Wanchai / Causeway Bay both dropped by 0.2%, while Tsimshatsui's rent remained stable. 

Three units on the high-zone floor at NCB Innovation Centre in Cheung Sha Wan were acquired by Cortina Holdings for around HKD 63.3 million (HKD 15,067 per sq ft, GFA) from New World Development.