Hong Kong office vacancy rate hits 12.6% in June

It’s a marginal increase from the previous month’s 12.4%.

According to JLL, Hong Kong’s overall office market recorded a negative net absorption of 121,000 sq ft in June. Premium offices in decentralised submarkets continued to attract tenants with upgrading demand. 

For example, international law firm Stephenson Harwood leased one floor (21,900 sq ft, LFA) at One Taikoo Place in Quarry Bay to relocate and upgrade its office from United Centre in Admiralty. 

Here’s more from JLL:

The overall vacancy rate rose marginally to 12.6% as at end-June. The vacancy rate in Central rose to 9.4%, while Wanchai / Causeway Bay and Hong Kong East's vacancy rose 0.3 and 0.2 percentage points, respectively. 

Overall net effective rent edged down by 0.5% m-o-m in June. Among the major office submarkets, rentals in Wanchai / Causeway Bay and Tsimshatsui rose marginally by 0.1% and 0.2%, respectively, while Central's rent fell marginally by 1.0%. 

The investment market was quiet during the month. Asia Cassava Resources Holdings sold three high-zone units at Houston Centre in Tsimshatsui to two separate buyers for HKD 50.56 million.