JLL: The vacancy rate of Grade A offices in Central dropped to 10.1% in January, the lowest level since 2023

According to a report by Jones Lang LaSalle, the vacancy rate of Grade A office buildings in Central dropped by 0.8 percentage points month-on-month to 10.1% at the end of January this year, down from a peak of 12.2% in September 2024, marking the lowest level since 2023. By the end of January, the overall office vacancy rate decreased to 13.5%; the vacancy rates in Wan Chai/Causeway Bay and Tsim Sha Tsui also fell by 0.5 percentage points month-on-month.

Guo Liyan, head of the commercial department at Jones Lang LaSalle Hong Kong, stated that the market is witnessing a trend of leasing demand returning to core areas, primarily driven by financial institutions. The vacancy rates of several top-quality Grade A office buildings in Central have significantly improved or dropped to single digits, and some overflow demand will gradually penetrate into non-traditional core business districts, benefiting the overall Grade A office market.

Zhong Churu, senior director of the research department at Jones Lang LaSalle, noted that the overall office rental rates increased by 0.3% month-on-month, marking the fourth consecutive month of growth, mainly driven by Central, where rental rates rose by 1.2% month-on-month, while other districts recorded slight declines