JLL: Hong Kong Grade A office vacancy rate rises to 13.5% in March, polarization of vacancy rates in various districts intensifies.

Jones Lang LaSalle (JLL) stated that the polarization of the vacancy rate of Grade A office buildings in Hong Kong worsened in March, with improvement in Central and Tsim Sha Tsui, but rising vacancy rates in other districts, leading to an overall Grade A office vacancy rate in Hong Kong rising to 13.5%. Jones Lang LaSalle (JLL) released a report on the Hong Kong property market, indicating that the overall Grade A office vacancy rate in March increased by 0.1 percentage point to 13.5%. Central's vacancy rate decreased by 0.3 percentage points to 9.6% and Tsim Sha Tsui's vacancy rate dropped by 0.2 percentage points to 6.8%. However, Kowloon East continued to be under pressure, with a vacancy rate rising by 0.9 percentage points to 20.4%. The overall office leasing market recorded a net absorption of negative 11,920 sq ft, mainly due to multiple entire floor units in Kowloon East becoming available for lease after their lease terms expired. In terms of rents, the overall office rents in Hong Kong increased by 0.1% in March, with Central continuing to be the main driver of rental growth, rising by 3.8% so far this year. Rents in Tsim Sha Tsui and Hong Kong Island East remained stable, while rents in Kowloon East continued to decline, falling by 0.7% in March. Kelvin Kwok, Head of Commercial at Jones Lang LaSalle (JLL) Hong Kong, stated that office leasing demand continued to focus on the core business districts, driven by financial institutions. As leasing demand from other industries has not yet recovered, non-core business districts will continue to face pressure, and this situation is expected to persist in the short term.