In July, the leasing transaction volume of Hong Kong commercial buildings was approximately 497, and the vacancy rate in core areas continued to improve.

According to the latest statistics from Centaline (Commercial and Industrial), the Hong Kong commercial market recorded approximately 497 lease transactions in July, which is roughly similar to the approximately 483 transactions in the previous month, reflecting a slight month-on-month increase of about 2.9%. The leased area was approximately 1.29 million square feet, representing an increase of about 6.6% compared to the previous month. Centaline (Commercial and Industrial) expects that with the upgrade and relocation of foreign financial institutions and the expansion of office spaces, the number of lease transactions for office buildings in August is likely to surpass the 500 mark, and the vacancy rate in core areas will continue to improve. Centaline (Commercial and Industrial) Chief Operating Director Chan Yin-lau stated that according to their data, July recorded about 497 lease transactions in the commercial market, which represents a slight month-on-month increase of about 2.90% and a year-on-year decrease of approximately 4.24%. The leased area was around 1.29 million square feet, showing a month-on-month increase of about 6.6% but a year-on-year decrease of about 10%. Chan pointed out that the overall vacancy rate of Grade A office buildings on Hong Kong Island has shown improvement for seven consecutive months this year, with the latest vacancy rate recorded at 10.6% in July, which is an improvement of 0.42 percentage points compared to the previous month and a significant decrease of 2.35 percentage points compared to the same period last year. In Central District, the vacancy rate has fallen below 10% for the first time in four years, reaching 9.74%, marking a new monthly low since December 2022, with a month-on-month decrease of 0.67 percentage points and a substantial year-on-year improvement of 3.15 percentage points. The Admiralty District recorded a vacancy rate of 4.44%, with month-on-month and year-on-year decreases of 0.51 and 3.7 percentage points, respectively; while Causeway Bays vacancy rate has fluctuated slightly, recorded at 8.13%, which is an improvement of 0.16 percentage points compared to the previous month, but an increase of 0.21 percentage points compared to the same time last year. In Kowloon District, the overall vacancy rate for Grade A office buildings in July was 15.86%, showing a month-on-month improvement of 0.08 percentage points and a slight year-on-year increase of 0.01 percentage points. The vacancy rates for sub-regions developed differently, with Tsim Sha Tsui recording a rate of 6.76%, a slight month-on-month increase of 0.24 percentage points, but an improvement of 0.76 percentage points compared to the same period last year. Kwun Tong and Kowloon Bay recorded vacancy rates of 16.97% and 25.18%, significantly increasing year-on-year by 2.38 and 3.2 percentage points, with month-on-month improvements of 1.12 and 0.09 percentage points, respectively. Chan continued to point out that currently, Hong Kong's Grade A office rents have adjusted to an ideal level, attracting businesses of all sizes to establish a presence. Coupled with foreign institutions accelerating their expansion plans in Hong Kong, this will continue to drive demand for office relocations and expansions. At the same time, the performance of Hong Kong's financial market remains robust, further stimulating the leasing demand for offices in the financial and related professional services sectors. Centaline (Commercial and Industrial) anticipates that driven by the demand for corporate expansions and relocations, the volume of commercial lease transactions in August is likely to exceed 500, and leasing activities for Grade A office buildings in core areas are expected to remain active, with the overall office market showing a trend of "price and volume stabilizing."