Grade A office market records positive net take-up for four consecutive months

HONG KONG, 25 August 2025 – The overall Grade A office market recorded a positive net absorption of 189,500 sq ft in July, marking the fourth consecutive month of positive net take-up since April, according to JLL's latest Hong Kong Monthly Market Dynamics released today.

Alex Barnes, Managing Director of JLL in Hong Kong, Macau and Taiwan, said: "Leasing demand continues to be mainly driven by flight-to-quality as tenants capitalise on soft rental rates to upgrade their office spaces."

Notably, Shell Hong Kong Limited has leased 12,300 sq ft of office space at The Millennity in Kwun Tong, relocating from its previous premises at Landmark East within the same district.

Cathie Chung, Senior Director of Research at JLL, said: "We saw a slight improvement in overall office vacancy rates, which edged down to 13.4% at the end of July. All but one submarket recorded declines in vacancy, with Hong Kong East and Kowloon East improving to 13.4% and 20.2%, respectively. However, Wanchai/Causeway Bay saw a negative net absorption, pushing its vacancy rate up to 9.6%."

Meanwhile, office rents continue to drop. In July, overall Grade A office rents declined by 0.5% m-o-m. Hong Kong East recorded the largest drop at 2.6%, followed by a 0.7% decline in Kowloon East. Central experienced a slight decrease of 0.2%. 

Source: JLL Research