Hong Kong’s office leasing market picks up pace for fourth straight month

Tenants leased a net 190,000 sq ft of prime office space last month, while rents fell 0.5 per cent month on month, according to JLL

Office-leasing activity in Hong Kong rose for a fourth straight month in July, chipping away at the elevated vacancy rates that continue to weigh on rents, according to JLL.

However, grade A office rents continued to fall, declining 0.5 per cent in July from a month earlier despite the improved leasing activity.

“Leasing demand continues to be mainly driven by flight-to-quality, as tenants capitalise on soft rental rates to upgrade their office space,” said Alex Barnes, managing director of JLL in Hong Kong, Macau and Taiwan.

The market absorbed a net of 463,000 sq ft of space from April to July, according to JLL.