Commercial Real Estate News
Hong Kong Office Market Records Positive Office Absorption Late in 2021
According to JLL's latest Hong Kong Property Market Monitor, positive net absorption was recorded in the overall Grade A office market for the third consecutive month, at 9,100 square feet in December 2021.
The office leasing market saw less activity towards the end of 2021, but the overall Grade A office market recorded a positive net absorption for three consecutive months as occupier demand for premium office space continued to improve.
The overall vacancy rate stood at 9.6% as of the end of 2021. The vacancy rate in Central rose to 8%, while Kowloon East registered the highest vacancy rate among major office submarkets at 13.3%.
Alex Barnes, Head of Agency Leasing at JLL in Hong Kong reports, "Overall net effective rents of Grade A office grew 0.2% m-o-m in December. 2022 will see the vacancy rate tick higher on the back of about five million sq. ft of new office supply slated for completion. We expect that overall office rents will buck this addition of new supply and rise 0-5% this year with improving business sentiment."
On the industrial sector, Nelson Wong, Head of Research at JLL in Greater China also commented, "Driven by robust domestic consumption, the industrial leasing market welcomed numerous commitments by logistics players, mainly on renewals with one notable new letting. The industrial investment market remained active."
One major en-bloc leasing transaction was Kerry Logistics, which leased a total gross floor area of 131,627 sq. ft at Sunhing Hungkai Godown in Tuen Mun.
