Hong Kong office vacancy rate drops to 9.1% in February

Kowloon East recorded the highest vacancy rate at 12.4%. 

The tightened social distancing measures in Hong Kong caused a lull in Hong Kong’s office leasing market in February. However, JLL said net absorption in the overall market recorded 276,500 sq ft in February as tenant demand continued to recover. 

One notable expansion case is that YF Life Insurance International leased a total of 17,400 sq ft (GFA) at Grand Century Place Tower 2 in Mongkok and The Gateway Tower 6 in Tsimshatsui for new agency office use. 

Here’s more from JLL:

The overall vacancy rate dropped to 9.1% as of end-February. The vacancy rate in Central retreated to 7.4%, while Kowloon East continued to register the highest vacancy rate among major office submarkets at 12.4%. 

Overall net effective rents remained flat in February. Among the major office submarkets, Central registered mild rental growth during the month, while Kowloon East experienced the biggest rental decline. 

The primary investment market recorded one notable transaction during the month. PC Partner Group acquired one high-zone floor at 888 Lai Chi Kok Road in Cheung Sha Wan for HKD 388 million (HKD 15,750 per sq ft).