Hong Kong office rents slip 0.1% in July

Vacancy rate rose to 9.6% during the month.

According to data from JLL, the overall net absorption in Hong Kong’s office property market was recorded at 217,000 sq ft in July due to the completion of a government building in Kai Tak. 

As a notable expansion case, Far East Horizon leased 10,100 sq ft (GFA) at the International Commerce Centre in West Kowloon for in-house expansion. Furthermore, IWG leased 33,000 sq ft (GFA) in the same building for expansion. 

Here’s more from JLL:

The overall vacancy rate rose to 9.6% as of end-July as several sizeable spaces became available, in addition to the quiet market. The vacancy rate in Central edged up to 8.2%, while Kowloon East's vacancy rate improved to 12.6%. 

Overall net effective rents dropped further by 0.1% m-o-m in July. Among the major office submarkets, Central and Wanchai / Causeway Bay's rents registered a marginal decline of 0.1% and 0.2%, respectively, while rents in Tsimshatsui rose by 0.3%. 

One mid-zone floor at Tower II, Admiralty Centre in Admiralty was acquired by Tomson Group for long-term investment at a consideration of HKD 193 million (HKD 18,161 per sq ft, GFA) from Wai Chun Holdings Group's receivers.