Central’s office rents gain 2.1%, led by top-tier Grade A buildings
21 May 2026
News release
21 May 2026
Only Central’s Grade A office market records vacancy improvement in April
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Authors
Yvonne Liu
HONG KONG, 21 May 2026 – The vacancy rate of Central's Grade A office market declined by a further 0.4 percentage points to 9.2% in April, making it the only office submarket to record an improvement in vacancy, according to JLL's latest Hong Kong Monthly Market Dynamics released today.
This helped keep the overall office vacancy rate stable at 13.5% at end-April, despite raising vacancies across other submarkets. Kowloon East recorded the sharpest increase, with its vacancy rate rising from 20.4% to 20.7% over the period.
Alex Barnes, Managing Director at JLL in Hong Kong, Macau and Taiwan, said: "As top-tier buildings in Central approach full occupancy, we are beginning to see demand gradually spillover to newer Grade A developments, such as Cheung Kong Center II. With office leasing demand continuing to be driven by financial institutions, as well as wealth management and insurance firms, West Kowloon is also emerging as a key area of interest, supported by its proximity to the High Speed Rail and tightening availability of premium space in Central."
Cathie Chung, Senior Director of Research at JLL, added: "Overall Grade A office rents rose by 1.2% m-o-m in April. Central remained the primary driver of rental growth, recording a 2.1% increase over the period. Meanwhile, rents in Wanchai / Causeway Bay showed early signs of recovery, rising by 1.2% m-o-m."
In April, the office leasing market recorded positive net absorption of 8,000 sq ft, with gains in core locations more than offsetting negative absorption in fringe submarkets. Over the first four months of 2026, Central recorded average monthly net absorption of over 100,000 sq ft.
Grade A office buildings in West Kowloon are also attracting strong tenant interest, particularly from the finance and insurance sectors, which remain key sources of leasing demand. For example, AXA leased three high-zone floors totalling 97,500 sq ft at International Gateway Centre in West Kowloon.
Source: JLL Research
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