Hong Kong’s overall office market charted a negative net absorption of 143,400 square feet in 1Q25, in wake of large-scale floor space being vacated following corporate consolidations and relocations, JLL’s report indicated. Additionally, influenced by the completion of new projects, the overall office vacancy rate rose to 13.7% by the end of March.

Sam Gourlay, Head of Office Leasing Advisory in Hong Kong Island, JLL, commented that the office leasing market in 1Q25 continued to face pressure from enormous new supply, resulting in negative absorption and a higher vacancy rate. Despite improved market sentiment due to several leasing expansion deals by financial institutions in core districts, Grade A office rents are still expected to decline by 5-10% this year.

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