JLL: Grade A office vacancy rate in Central District fell in April, while rents increased by 2.1%.

Jones Lang LaSalle (JLL) released the "Hong Kong Real Estate Market Observation" report, pointing out that in April, the vacancy rate of grade A office buildings in Central further dropped by 0.4 percentage points to 9.2%, making it the only market in all office districts to record an improvement in vacancy rate. Despite an increase in vacancy rates in other districts, driven by Central, the overall office vacancy rate in Hong Kong remained at 13.5% at the end of April. Among them, the vacancy rate in East Kowloon saw the most significant increase, rising from 20.4% to 20.7% month-on-month. Bowie Lau, Managing Director of Jones Lang LaSalle (JLL) in Hong Kong, Macau, and Taiwan, stated that as prime office spaces in Central are near full occupancy, market demand is gradually shifting to newly completed grade A commercial buildings such as the One Taikoo Place. Currently, demand for office leasing is still dominated by financial institutions, wealth management, and insurance companies. With the supply of quality office spaces in Central becoming tighter, West Kowloon, with its high-speed rail connectivity, has become another target for tenants. Senior Director of Research at Jones Lang LaSalle (JLL), Zoe Fung, added that in April, overall grade A office rents increased by 1.2% month-on-month. Central continues to be the main driver of rent growth, with a 2.1% increase during the month. Additionally, there are signs of a recovery in rents in Wan Chai/Causeway Bay, with a 1.2% increase month-on-month. The office leasing market recorded a positive net absorption of 8,000 square feet in April, with growth in the core area fully offsetting the negative absorption in non-core areas. Looking back at the first four months of 2026, Central has seen an average monthly net absorption of over 100,000 square feet. In addition, grade A office buildings in West Kowloon are also in high demand, especially attracting financial and insurance industries, both of which continue to dominate leasing demand.