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News Release

Hong Kong - 1/31/2011

Highest Recorded Rental Growth Since 2008 In January 2011


The Grade A office leasing market continued to be active entering January this year that lift landlords’ expectations on achievable rentals.
 
In the first month of 2011, Grade A office rents in Central and Hong Kong East rose significantly by 4.7% and 7.1% m-o-m, respectively—both districts saw new record highs for rental growth in a single month, according to Jones Lang LaSalle’s Grade A Office Index, which has been tracking rental changes on a monthly basis since 2006.
 
Rents in the overall market in January grew 4.5% m-o-m, ranking only second to the record high of 4.9% recorded in February 2008. Average vacancy rate now stand at about 3% across all Hong Kong Island sub-markets. ‘We expect rents to climb up further to reach a 30% growth in the overall market by end-2011,’ comments Gavin Morgan, Deputy Managing Director and Head of Leasing, Hong Kong at Jones Lang LaSalle.
 
‘Rents in the overall and Central markets are now somewhat 15% and 18% below the peak level in 3Q08, respectively; however, rentals in these two markets are expected to go beyond that level by the end of 2011, reaching new record highs’, concludes Morgan.
 
Grade A Office Rental Growth
 
Overall 
Central
 
Wan Chai/ Causeway Bay 
 Hong Kong East 
Tsim Sha Tsui 
Kowloon East
2010 Full-Year
28.5% 
33.4%
31.8% 
12.6%
16.2%
21.5%
Jan 2011 (m-o-m)
4.5% 
4.7%
4.3% 
7.1%
 2.4% 
2.5%