News release

Overall net effective Grade A office rents rise by 0.2% m-o-m in October

Marking the first time since the last peak in May 2019

November 23, 2021

Yvonne Liu

Director, Public Relations
+852 2846 5264

HONG KONG, 23 November 2021 – Overall net effective rents of Grade A office market rose by 0.2% m-o-m in October, the first time since the last peak in May 2019. Among the major office submarkets, both Central and Tsimshatsui registered rental growth during the month, according to JLL's latest Hong Kong Property Market Monitor released today.

Overall net absorption was 107,200 sq ft in October. There were more instances of expansion recorded in the market, while tenants continued to look for wellness amenities and flexibility in the workplace. In one such instance, business center operator IWG leased two floors of 23,400 sq ft (gross floor area) at Tower 535 in Causeway Bay to open a new center to meet the growing demand for flexible space.

The leasing market was active in Central during the month. Notably, an investment management firm leased a floor of 13,900 sq ft (net floor area) at One Exchange Square to relocate within the submarket.

Nelson Wong, Head of Research at JLL in Greater China, said: “As tenants are continuing to look for wellness amenities and flexibility in the workplace, landlords should be aware of this trend and the growing demand for such, and enhance the amenities in their office spaces,”

On the industrial sector, Wong noted: "The values of merchandise trade continued to expand in September. Aggregate trade value registered a steady increase of 20.0% y-o-y, with total imports and exports rising by 23.5% and 16.5% respectively. Despite supply bottlenecks in many places around the world, local demand continued to support the leasing market in October. For instance, third-party logistics company DSV expanded its presence at Modern Terminals Warehouses – Phase II in Kwai Chung by leasing approximately 57,500 sq ft."

Grade A Office Vacancy

Period

Overall

Central

Wanchai /

Causeway Bay

Hong Kong East

Tsimshatsui

Kowloon East

End-Oct 21

9.7%

7.9%

9.9%

7.3%

10.1%

13.4%

End-Sept 21

9.8%

7.8%

10.3%

7.2%

9.9%

13.8%

Source: JLL Research 


About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.