Hong Kong office vacancy rates to plateau as Central hits 43-month low
Despite increased supply and a vacancy rate plateauing at 14 per cent, prime office rentals will rise up to 5 per cent this year, says JLL
Hong Kong’s office property market is likely to see its empty spaces plateau at 14 per cent as vacancy rates in Central fell to more than a three-and-a-half-year low in June, according to JLL.
The property consultancy said that although the overall vacancy rate for the office property sector fell to 13.1 per cent in the first half, the supply pipeline would increase the number of office spaces and plateau at 14 per cent in the coming months.
“Another 2 million square feet of office space will be completed,” said Sam Gourlay, head of office leasing advisory at JLL in Hong Kong.
For instance, new buildings such as Central Crossing in the city’s main business district were set to be completed this year, according to JLL.
Despite the new supply, JLL forecast there would be as much as a 5 per cent rise in overall prime office rents in Hong Kong for the full year, following the 3.2 per cent increase in the first six months.
Central would lead with a 10 to 15 per cent increase for the entire year, followed by the 0 to 5 per cent increments in the districts of Wan Chai/Causeway Bay and Tsim Sha Tsui.