Tsimshatsui office vacancy drops to 6.7% in June
Authors
Yvonne Liu
HONG KONG, 27 July 2026 – Vacancy rate for Grade A offices in Tsimshatsui fell by a further 0.4 percentage points to 6.7% at the end of June, according to JLL's latest Hong Kong Monthly Market Dynamics released today. Tsimshatsui, together with Central, recorded the most significant improvements in both vacancy rates and rents among the major office submarkets.
Tsimshatsui's vacancy rate peaked at 11.2% in September 2022. However, supported by growing wealth inflows from mainland China, leasing activity from the insurance and wealth management sectors has rebounded, driving demand for office space in the district. As a result, vacancy rates in Tsimshatsui have continued to improve since 2025, reinforcing the district's recovery momentum.
Alex Barnes, Co-CEO at JLL in Greater China, said: "Vacancy rates in Tsimshatsui have fallen to the lowest level among Hong Kong's major business districts. One Peking, one of the district's landmark office towers, achieved fully occupancy in June for the first time in 2024. We expect vacancy rates in the district to continue declining in the second half of the year, as the district is well positioned to benefit from spillover demand from Central."
In June, Hong Kong's office leasing market recorded positive net absorption of 279,000 sq ft. One of the major transactions during the month was RGA Reinsurance's lease of an entire floor totalling 23,500 sq ft at Two Taikoo Place in Quarry Bay.
The overall office vacancy rate declined to 13.1% as at end-June, with vacancy rates in Central and Kowloon East falling by 0.4 ppts and 0.5 ppts m-o-m, respectively.
Cathie Chung, Senior Director of Research at JLL, added: "Overall Grade A office rents rose by 0.1% m-o-m. Central remained the primary driver of rental growth, recording a 0.6% m-o-m increase. Meanwhile, rents in Tsimshatsui increased by 0.5%, reflecting continued leasing momentum in the district."
About JLL
JLL (NYSE:JLL) is a leading global commercial real estate services and investment management company with annual revenue of $26.1 billion, operations in over 80 countries and a global workforce of more than 113,000 as of March 31, 2026. For over 200 years, clients have trusted JLL, a Fortune 500® company, to help them confidently buy, build, occupy, manage and invest across a variety of industries and property types, including office, industrial, hotel, multi-family, retail and data center properties. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. Powered by rich global datasets and leading technology capabilities, we provide coordinated, end-to-end delivery of real estate services for a broad range of global clients who represent a wide variety of industries. Through LaSalle Investment Management, we invest for clients on a global basis in both private assets and publicly traded real estate securities. For further information, visit jll.com.