Central's Grade A office vacancy rate edges down in January

HONG KONG, February 19, 2025 – Central's Grade A office market recorded the largest net absorption among submarkets in January, while the vacancy rate improved from 11.6% to 11.3% by the end of the month, according to JLL's latest Hong Kong Monthly Market Dynamics released today.

Despite the overall leasing market recording a negative net absorption of 87,500 sq ft, Central recorded the largest net absorption among the submarkets at 81,100 sq ft.

Alex Barnes, Managing Director at JLL in Hong Kong, said: "The overall vacancy rate rose slightly to 13.3% as at end-January. We saw improvements in some submarkets such as Central, with financial institutions continuing to expand in the submarket. Furthermore, Wanchai/Causeway Bay vacancy improved by 0.2 percentage points,"

"And we began to see a rebound in the number of regional headquarters based in Hong Kong in 2024, marking the first increase in five years. The number of regional headquarters has increased 5.5% to 1,410 as at end-2024, which could support the city's office leasing market," he added.

Cathie Chung, Senior Director of Research at JLL, said: "Overall Grade A office rent continued to decline in January, with a marginal month-on-month drop of 0.2%. Central and Wanchai/Causeway Bay rents fell by 0.1% and 0.2%, respectively, while Hong Kong East and Kowloon East submarkets recorded rent drops of 0.8% and 0.3%."

Source: JLL Research