HK's office vacancy rate climbs to 12.9% in January

Central experienced a vacancy rate increase to 10.4% by the end of January.

The overall vacancy rate for Grade A offices in Hong Kong hit 12.9% by the end of January, driven by new completions, according to JLL's latest Property Market Monitor. 

Despite a net absorption of 160,800 square feet, primarily attributed to pre-committed space at The Henderson in Central, new office supply pushed up the vacancy rate. 

Central experienced a vacancy rate increase to 10.4% by the end of January, while Tsim Sha Tsui and Kowloon East saw declines of 0.4 percentage points each.

"The office leasing market is predominantly fuelled by office upgrades as rents have dropped substantially from their market peak,” said Alex Barnes, managing director at JLL Hong Kong.

“The increase in new office completions has been a driving force behind tenants seeking high-quality office spaces to enhance their working environment," he added, noting the trend of new green-certified buildings outperforming others.