According to a report by Jones Lang LaSalle (JLL), the vacancy rate for Grade A office space in Central Hong Kong fell by 0.4 percentage points to 9.2% in April, making it the only submarket to record an improvement in vacancy levels. While vacancy rates rose in other districts, the overall office vacancy rate in Hong Kong remained stable at 13.5% by the end of April, largely supported by Central's performance. Notably, Kowloon East saw the most significant increase in vacancy, rising from 20.4% to 20.7% month-on-month.

Alex Barnes, Managing Director of JLL Hong Kong, Macau, and Taiwan, noted that as premium office spaces in Central are nearly fully leased, demand is gradually shifting to newly completed Grade A buildings such as Cheung Kong Center II. Current leasing demand continues to be led by financial institutions, wealth management firms, and insurance companies. With the supply of high-quality space in Central becoming increasingly tight, West Kowloon, benefiting from its high-speed rail connectivity, has emerged as another sought-after destination for tenants.

Suzanne Chung, Senior Director of Research at JLL, added that overall Grade A office rents increased by 1.2% month-on-month in April. Central remained the primary driver of rental growth, with rents rising by 2.1% during the month. Meanwhile, Wan Chai/Causeway Bay also showed early signs of recovery, with rents increasing by 1.2%.

The office leasing market recorded positive net absorption of 8,000 square feet in April, with growth in core markets fully offsetting negative absorption in non-core areas. Over the first four months of 2026, Central averaged monthly net absorption exceeding 100,000 square feet. Additionally, Grade A office spaces in West Kowloon have gained popularity among tenants, particularly attracting financial and insurance firms, which continue to dominate leasing demand.