Hong Kong overall office vacancy rate down to 9.4% in January

Kowloon East still had the highest vacancy rate at 12.4%.

The Hong Kong office market recorded net absorption of 647,100 sq ft in January due to improving occupier demand and realisation of pre-commitment in new supply, according to JLL. Tenants continued to look for quality in their office premises. 

Notably, logistics service provider FedEx leased 40,600 sq ft (GFA) at Landmark East in Kwun Tong to consolidate its offices in Kowloon East. 

Here’s more from JLL:

The overall vacancy rate retreated to 9.4% as of end-January. The vacancy rate in Central dropped to 7.7%, while Kowloon East continued to register the highest vacancy rate among major office submarkets at 12.4%. 

Overall net effective rents grew 0.2% m-o-m in January. Among the major office submarkets, Central, Tsimshatsui and Kowloon East registered mild rental growth during the month, while Hong Kong East experienced the biggest rental decline. 

The investment market recorded one notable transaction during the month. Hanison Construction sold enbloc The Edward in Mongkok to the Order of Friars Minor in Hong Kong for HKD 280 million (HKD 11,536 per sq ft).