Hong Kong office rents dip 0.4% in December 

Meanwhile, the vacancy rate increased to 12.1%.

According to a JLL report, the overall net absorption in Hong Kong’s office market was -116,900 sq ft in December due to limited leasing activities towards year-end. 

Among a handful of new lettings, pension services provider iFAST ePension leased two floors (45,500 sq ft, GFA) at The Gateway Prudential Tower in Tsimshatsui for in-house expansion. 

Here’s more from JLL:

Due to new completions, the overall vacancy rate rose to 12.1% as of end-December. The vacancy rate in Central and Wanchai / Causeway Bay rose marginally to 8.8% and 10.2%, respectively, while Kowloon East's vacancy rate rose to 19.5%. 

Overall net effective rents dropped further by 0.4% m-o-m in December. Among the major office submarkets, rentals in Central and Wanchai / Causeway Bay both dropped by 0.5% and 0.4%, respectively. The overall market recorded a rental drop of 3.7% for the full year 2022. 

The investment volume was boosted towards the end of the month by one major transaction. A JV between PAG and Mapletree Investments acquired Goldin Financial Global Centre in Kowloon Bay for around HKD 5.6 billion (HKD 6,570 per sq ft, GFA) from Goldin Group's liquidators.