Education sector emerged as an active player in office leasing market
News release
17 April 2025
Overall Grade A office market records negative net absorption in March
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HONG KONG, April 17, 2025 – The overall Grade A office leasing market recorded a negative net absorption of 63,100 sq ft in March after the positive net absorption recorded in February, according to JLL's latest Hong Kong Monthly Market Dynamics released today. This is primarily due to significant spaces re-entering the market following previous consolidations and relocations.
Vacancy rates of the major business districts were relatively stable last month. Central and Hong Kong East’s vacancies remained steady, while the vacancies in Wanchai / Causeway Bay and Tsimshatsui improved, decreasing by 0.1 and 0.6 percentage points, respectively. In contrast, Kowloon East’s vacancy rate rose to 21.3% mainly due to the new completion - THE CENDAS in Kowloon Bay.
Sam Gourlay, Head of Office Leasing Advisory at JLL in Hong Kong Island, said: “Overall vacancy rates increased to 13.7%, largely due to the stock adjustments. The volume of leasing activities has however been strong, with the education sector emerging as another active occupier group alongside that of financial and related sectors.”
Notably, Tung Wah College Kwai Hing Campus (KHC) leased one floor with a total Gross Floor Area of 21,500 sq ft at Kowloon Commerce Centre Tower A in Kwai Hing to expand from Tower B.
Cathie Chung, Senior Director of Research at JLL, said: "Overall Grade A office rents continued to drop last month, with a slight m-o-m decrease of 0.6%. Central and Wanchai / Causeway Bay both experienced modest rental decreases of 0.2% and 0.4% respectively. Meanwhile, Hong Kong East experienced the most significant drop, with rents falling by 1.2%. Kowloon East also saw a rental decline of 0.2%.”
Source: JLL Research
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 112,000 employees bring the power of a global platform combined with local expertise. 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 WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.