Central and Tsimshatsui see vacancy improvement while non-core districts remain under pressure
News release
22 April 2026
Vacancy polarisation intensifies across Hong Kong's Grade A office market
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HONG KONG, 22 April 2026 – Vacancy rate polarisation across Hong Kong's Grade A office market intensified in March, according to JLL's latest Hong Kong Monthly Market Dynamics released today. While vacancy rates in Central and Tsimshatsui improved during the month, rising vacancies in other submarkets pushed the overall Grade A vacancy rate higher, reaching 13.5% at end-March.
Central recorded a m-o-m decline in vacancy of 0.3 ppts to 9.6%, while Tsimshatsui saw its vacancy rate edge down from 7.0% to 6.8%. Conversely, Kowloon East continued to face leasing headwinds, with vacancy rising by 0.9 ppts m-o-m to 20.4%.
The office leasing market posted negative net absorption of 119,200 sq ft, largely due to several whole-floor units in Kowloon East returning to the market following lease expirations.
Sam Gourlay, Head of Office Leasing Advisory at JLL in Hong Kong, said: "Office leasing demand continues to concentrate in core business districts, driven primarily by financial institutions. Leasing demand from other sectors has yet to recover, leaving non-core business areas under sustained pressure. We expect this dynamic to persist in the near term."
Cathie Chung, Senior Director of Research at JLL, added: "Overall office rent rose by 0.1% m-o-m in March. Central remained the key driver of rental growth, recording a 3.8% increase YTD. Rents in Tsimshatsui and Hong Kong East were flat during the month, while Kowloon East continued to face downward pressure, with rents declining by 0.7% m-o-m."
Source: JLL Research
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