Hong Kong office vacancy rate climbs to 16.6% in Q2

This was driven by the Central/Admiralty area.

In Q2 2024, Hong Kong rental rates across all submarkets fell, causing the overall Grade A office rent to decline 1.0% QoQ (-3.5% YTD) to HKD51.0 per sq. ft. in June 2024, according to Colliers data. 

Central / Admiralty dropped 1.2% QoQ (-3.8% YTD) to HKD89.6 per sq. ft., while Island East experienced the sharpest drop out of all submarkets (-2.4% QoQ, -5.0% YTD). 

Here’s more from Colliers:

Vacancy climbed to 16.6% in Q2 2024. Central / Admiralty witnessed a substantial increase of two percentage points (pp), driven by the completion of two major projects (The Henderson and Cheung Kong Center II) with limited tenant precommitments. 

The total vacant Grade A office area has reached 13.8 million sq. ft. NFA, setting a record high by surpassing the previous peak in Q1 2024 by an additional 0.4 million sq. ft.