According to a recent report, Jones Lang LaSalle (JLL) has indicated that the absorption of Grade A office space in Hong Kong's Wan Chai and Causeway Bay districts reached its highest level since April 2024 during the month of May.

This surge is primarily attributed to the tight supply of office space in the Central district, which has redirected some leasing demand to Wan Chai and Causeway Bay.

The influx of demand from Central has accelerated leasing activity in the Wan Chai/Causeway Bay area, leading to a net absorption of approximately 98,600 square feet in May.

Consequently, the vacancy rate for Grade A offices in Wan Chai/Causeway Bay decreased by 0.6 percentage points to 9.8% by the end of May, marking its lowest point in ten months.

Sam Gourlay, Head of Leasing for Jones Lang LaSalle in Hong Kong, noted that the premium Grade A office spaces in Central are nearly fully leased, causing a shift in demand and contributing to a decline in the overall office vacancy rate to 13.3% by the end of May.

Nevertheless, tenants are expected to continue focusing their attention on newer and higher-quality commercial buildings.

The overall office leasing market recorded a positive net absorption of 205,000 square feet in May, with demand from the securities sector remaining particularly robust.

Notable transactions included CITIC Securities leasing an entire floor of approximately 18,000 square feet in the CITIC Tower in Admiralty, and Ping An Securities securing about 14,900 square feet of space in The Center in Central.