Jones Lang Lasalle: Grade A office buildings recorded the longest positive net absorption since May 2022

Jones Lang Lasalle today (27th) published the "Hong Kong Real Estate Market Observation" report, which pointed out that the overall Grade A office leasing market recorded a positive net absorption of 143,000 square feet in September, marking six consecutive months of positive net absorption, the longest record of positive net absorption since May 2022.

Alex Barnes, Managing Director of Jones Lang Lasalle for Hong Kong, Macau, and Taiwan, stated that the leasing demand is mainly driven by the continuous increase in demand from banks and multinational corporations, with negotiations for the consolidation and upgrading of office spaces accelerating. The active performance of the Hong Kong stock market further solidifies the market's confidence in its status as an international financial center, prompting financial institutions to implement real estate plans for office spaces.

It is noteworthy that Shanghai Commercial Bank has leased 71,863 square feet (gross area) at Kai Tak AIRSIDE for consolidation purposes.

As of the end of September, the overall office vacancy rate slightly decreased to 13.4%, with most sub-market areas showing improvement. The vacancy rates in Central, Wan Chai, and Causeway Bay improved to 11% and 12%, respectively. In contrast, the vacancy rate in Tsim Sha Tsui increased by 0.1 percentage points to 7.7%.

Chung Choo Yu, Senior Director of the Research Department at Jones Lang Lasalle, stated that overall rents in September fell slightly by 0.1% month-on-month, with some premium office rents in core locations showing initial signs of stabilization. Rents in Wan Chai, Causeway Bay, and Tsim Sha Tsui recorded a month-on-month decline of 0.2%, while rents in Central remained stable