Hong Kong prime office vacancy hits 7-month low on Central spillover demand

Hong Kong prime office vacancy hits 7-month low on Central spillover demand City’s prime office market shows recovery signs as Central nears full occupancy, boosting rentals and spillover demand in nearby districts With Central’s grade A office vacancy rate holding steady at 9.2 per cent, tenants appeared to have found their way to neighbouring Wan Chai and Causeway Bay. Vacancy there edged down to 9.8 per cent in May from 10.4 per cent in April, the lowest in 10 months, the property consultancy said in its latest report. Net take-up in the district surged to 98,600 sq ft, the highest since April 2024. “We are beginning to see spillover demand as premium offices in Central approach full occupancy,” said Sam Gourlay, head of office leasing advisory at JLL in Hong Kong. “This has helped drive the overall office vacancy rate down to 13.3 per cent as at end-May, although occupiers are likely to remain focused on newer or higher-quality buildings.” Overall empty prime office space in the city stood at 13.5 per cent in April. “Overall grade A office rent increased by 0.3 per cent month on month in May,” said Cathie Chung, senior director of research at JLL. “Central remained the primary driver of rental growth, with rents rising by 0.7 per cent month on month, while Wan Chai and Causeway Bay recorded a more modest increase of 0.3 per cent.”