Premium Central offices lead Hong Kong Island leasing demand

Vacancy fell to 9.7% in July.

Premium Central office space remained the most sought-after segment of Hong Kong Island's office market in July, with vacancy falling to 9.7% from 14.5% at the start of the year, according to Knight Frank.

The property consultancy said demand from Chinese mainland financial institutions continued to underpin leasing activity, driven by both expansion and new occupiers establishing a presence in Hong Kong.

However, a shortage of large floor plates is prompting occupiers with substantial space requirements to look beyond immediately available options, with future availability and opportunities in Traditional Central office stock increasingly under consideration, Knight Frank said.

Sea-view offices in Central and Wan Chai North also attracted significant enquiry, including for existing and upcoming vacancies. According to Knight Frank, strong demand has strengthened landlords' negotiating positions, supporting firmer rents and lower vacancy for harbour-facing offices.

The consultancy said the combination of sustained mainland Chinese demand and limited availability of premium large-format space is continuing to shape leasing activity in Hong Kong Island's core office districts.