Hong Kong office vacancy rate rises to 12.3% in April

The vacancy rate in Hong Kong East alone rose 12.6%.

Hong Kong’s overall office market recorded a negative net absorption of 245,100 sq ft in April, and JLL attributes this to the return of some sizable spaces to the market during the month. 

Nevertheless, market sentiment continued to improve amid border reopening and economic recovery. Among a handful of new lettings, Doo Group leased one floor (12,600 sq ft, GFA) at The Millennity in Kwun Tong to upgrade and consolidate its offices within the same district. 

Here’s more from JLL:

The overall vacancy rate rose to 12.3% as at end-April. The vacancy rate in Wanchai / Causeway Bay and Hong Kong East rose to 9.9% and 12.6%, respectively, while Central's vacancy remained flat. 

Overall net effective rents dropped by 0.3% m-o-m in April. Among the major office submarkets, rentals in Central and Kowloon East dropped by 0.5%, while Tsimshatsui’s rent rose marginally by 0.3%. 

Two mid-zone units in Convention Plaza in Wanchai were sold to Surrich International for around HKD 255.0 million (HKD 31,075 per sq ft, GFA) for self-use. The buyer is a wholly-owned offshore subsidiary of the state-owned enterprise, Guolian Group from Wuxi.