JLL: Hong Kong Grade A office market saw negative absorption of 63,100 square feet in March; vacancy rates in major commercial districts remained relatively stable.

Jones Lang LaSalle (JLL) released a report stating that after recording a net absorption of Grade A office space in Hong Kong in February, there was a negative absorption of 63,100 square feet in March. This was mainly due to a large number of office spaces returning to the market after corporate office consolidation and relocation activities. The vacancy rates in the major commercial districts in March remained relatively stable, with Central and Hong Kong East maintaining stable vacancy rates; while Wan Chai/Causeway Bay and Tsim Sha Tsui saw slight improvements in vacancy rates, decreasing by 0.1 and 0.6 percentage points respectively. The vacancy rate in Kowloon East increased to 21.3% due to the completion of the new project "THE CENDAS". Guo Liyan, head of the Commercial Department of Jones Lang LaSalle (JLL) on Hong Kong Island, stated that the overall Grade A office vacancy rate increased to 13.7% mainly due to inventory adjustment. In fact, leasing and trading activities in commercial buildings remain active, with educational institutions being another active market tenant outside of the finance and finance-related industries. It is worth noting that the Kowloon Trade Centre in Kwai Hing has leased a space of 21,500 square feet on the first floor of Tower A, expanding from Tower B of the same project. Chung Chuyu, Senior Director of the Research Department at Jones Lang LaSalle (JLL), pointed out that in March, the overall Grade A office rents continued to decline, with a slight decrease of 0.6% per month. Rents in Central and Wan Chai/Causeway Bay fell slightly by 0.2% and 0.4% respectively. Meanwhile, Hong Kong East saw the most significant drop in rents, falling by 1.2%. Rents in Kowloon East also decreased by 0.2%.