Hong Kong’s overall prime office vacancy rate fell to a seven-month low in May, driven by spillover demand from Central, where premium offices were close to full occupancy, according to JLL.

With Central’s grade A office vacancy rate holding steady at 9.2 per cent, tenants appeared to have found their way to neighbouring Wan Chai and Causeway Bay. Vacancy there edged down to 9.8 per cent in May from 10.4 per cent in April, the lowest in 10 months, the property consultancy said in its latest report. Net take-up in the district surged to 98,600 sq ft, the highest since April 2024.

“We are beginning to see spillover demand as premium offices in Central approach full occupancy,” said Sam Gourlay, head of office leasing advisory at JLL in Hong Kong. “This has helped drive the overall office vacancy rate down to 13.3 per cent as at end-May, although occupiers are likely to remain focused on newer or higher-quality buildings.”

Overall empty prime office space in the city stood at 13.5 per cent in April.

The overall office leasing market recorded a positive net absorption of 205,000 sq ft, supported by robust demand from securities firms. Citic Securities leased an entire floor of about 18,000 sq ft at Citic Tower in Admiralty, while Ping An Securities took up around 14,900 sq ft at The Center in Central.

“Overall grade A office rent increased by 0.3 per cent month on month in May,” said Cathie Chung, senior director of research at JLL. “Central remained the primary driver of rental growth, with rents rising by 0.7 per cent month on month, while Wan Chai and Causeway Bay recorded a more modest increase of 0.3 per cent.”