Vacancies edge up as pace of office rent rises falters

THE increase in average office rents in Central and Admiralty slowed further last month, rising only 1.3 per cent to $86.65 a square foot.

City Property Consultants' monthly office review shows rents in Central and Admiralty rose 35.7 per cent in the first six months.

Vacancies were up slightly to 2.1 per cent, with 288,000 sq ft of unoccupied space, from 1.7 per cent in May.

After substantial rent rises in the first three months, the growth rate has softened. Office rents in Central and Admiralty rose 3.3 per cent in May.

City Property Consultants also indicated that average monthly rents for offices in Wan Chai and Causeway Bay were up 1.2 per cent to $61.50, for a total increase of 32.1 per cent in the first half.

Vacancies edged up to 2.8 per cent, with 252,000 sq ft unoccupied, from 2.6 per cent in May.

Overall, average rents for prime office properties jumped 1.2 per cent to $76.61, with a vacancy rate of 2.4 per cent, compared with 2.1 per cent in May.