Hong Kong overall office vacancy rate hits 11.6% in November

The rise was driven by two new completions.

According to JLL, the overall net absorption in Hong Kong’s office market was -44,400 sq ft in November due to limited leasing activities towards year-end and sizable spaces became available in some submarkets. 

High-quality new supplies in decentralised areas continued to attract occupiers looking for more affordable and newer options. 

Here’s more from JLL:

Notably, Konica Minolta Business Solution leased a whole floor (36,000 sq ft, GFA) at the newly completed AIRSIDE in Kai Tak. The tenant will relocate and upgrade from its previous location at Eastern Centre in Quarry Bay. 

The overall vacancy rate rose to 11.6% as of end-November, driven by the completions of Landmark South in Wong Chuk Hang and The Millennity (98 How Ming Street) in Kwun Tong. The vacancy rate in Central and Wanchai / Causeway Bay rose marginally to 8.7% and 10.1%, respectively, while Tsimshatsui's vacancy rate retreated to 10.9% from 11.0%. 

Overall net effective rents dropped further by 0.7% m-o-m in November. Among the major office submarkets, rentals in Central and Wanchai / Causeway Bay both dropped by 0.6%, while rents in Hong Kong East registered a drop of 0.5% during the month. 

One unit on the low-zone floor at Tower II, Admiralty Centre, was reportedly sold at a consideration of approximately HKD 20 million (HKD 18,904 per sq ft, GFA) by a PRC securities company.