August sees the slowest monthly decline in Grade A office rents year-to-date

HONG KONG, 24 September 2025 – The overall Grade A office market continued to record positive net absorption in August, totalling approximately 313,800 sq ft, supported by rising demand driven by a buoyant IPO pipeline and strength in the wealth management sector, according to JLL's latest Hong Kong Monthly Market Dynamics released today.

As at the end of August, the overall office vacancy rate edged up slightly to 13.5%, with strong absorption in existing buildings largely offsetting the impact of new supply of One Causeway Bay. Vacancy rates in Central and Tsimshatsui improved to 11.2% and 7.6%, respectively. In contrast, Wanchai/Causeway Bay saw vacancy rise from 9.6% to 12.2%.

Alex Barnes, Managing Director of JLL in Hong Kong, Macau and Taiwan, said: "We are seeing growing leasing demand from financial institutions and professional services firms, driven by a buoyant IPO market and rising wealth management activity. As wealth management centres increasingly cater to high-net-worth clients, these tenants tend to favour premium office space in core locations — helping to support occupancy levels in trophy buildings."

Notably, Jun He Law Offices leased an entire floor at AIA Central, with a lettable area of 14,830 sq ft.

Cathie Chung, Senior Director of Research at JLL, added: "The improving leasing market has helped stablise office rents. Overall Grade A office rents declined by just 0.2% m-o-m in August — the slowest rate of decline recorded this year. However, Hong Kong East saw a monthly drop at 0.6%, followed by a 0.3% decline in Kowloon East. Central experienced a marginal decrease of 0.1%."