Overall net effective rents drop 1.1% m-o-m
News release
24 October 2024
Grade A office market records negative take-up in September
HONG KONG, October 24, 2024 – The overall Grade A office leasing market recorded a negative net absorption of 57,500 sq ft in September due to a lack of sizable transactions, according to JLL's latest Hong Kong Property Market Monitor released today.
Bruce Pang, Head of Research at JLL in Greater China, said: "Vacancy rates in Central increased to 12.2% as at the end of September, while those in Wanchai / Causeway Bay and Tsimshatsui rose to 10.3% and 9.4%, respectively. However, the overall vacancy rate remained at 13.4% due to improvements in Hong Kong East and Kowloon East. Additionally, new office buildings continued to attract tenants looking to upgrade their workplaces."
For example, Arrowpoint Investment Partners has leased one floor of 7,600 sq ft (LFA) at Six Pacific Place in Wanchai, relocating from their previous flex space.
Cathie Chung, Senior Director of Research at JLL, said: "In September, the overall net effective rent decreased by 1.1% on a m-o-m basis. Central and Kowloon East experienced further rent declines of 1.6% and 0.7%, respectively. Rents also fell in the Wanchai / Causeway Bay and Hong Kong East submarkets, dropping by 0.4% and 0.8%, respectively."
Source: JLL Research
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