JLL: Negative absorption of Grade A office buildings in Hong Kong in March was 63,300 square feet, and the vacancy rate in major commercial areas was relatively stable

The Zhitong Finance App learned that JLL released a report saying that after recording net absorption in February, the overall Grade A office rental market in Hong Kong recorded a negative absorption volume of 63,300 square feet in March, mainly due to previous corporate office consolidation and relocation activities, a large number of floors returned to the market. The vacancy rate in major commercial areas remained relatively stable in March. Among them, vacancy rates in Central and Hong Kong Island East remained stable; while vacancy rates in Wanchai/Causeway Bay and Tsim Sha Tsui improved, falling 0.1 and 0.6 percentage points respectively; the vacancy rate in Kowloon East rose to 21.3% due to the completion of the new project “THE CENDAS”.

Guo Liyan, head of the Hong Kong Island Commerce Department at JLL, said that the overall vacancy rate of Grade A office buildings rose to 13.7% mainly due to stock adjustments. In fact, commercial building leasing transactions are still active, and educational institutions are tenants in an active market other than finance and finance-related industries. It is worth noting that Tung Wah University's Kwai Hing campus is located in Block A of the “Kowloon Trade Centre” in Kwai Hing. It was expanded from Block B of the same project by leasing one floor of space with a construction area of 21,500 square feet.

Chung Chu-ru, senior director of JLL's research department, pointed out that overall grade A office rents continued to fall in March, falling slightly by 0.6% month-on-month. Rents in Central and Wanchai/Causeway Bay declined slightly by 0.2% and 0.4%, respectively. Meanwhile, Hong Kong East recorded the most significant decline, with rents falling 1.2%. Rents in Kowloon East also fell by 0.2%.