Rising demand from global funds supports leasing momentum in Central
Overall Grade A office vacancy fell to 12.8% at the end of July, matching the level recorded in December 2023 and reaching its lowest point in 31 months, according to JLL’s latest Hong Kong Monthly Market Dynamics released today.
The improvement was driven by declining vacancy rates across most office submarkets, while Tsimshatsui continued to maintain a relatively low vacancy level. Central outperformed other major office districts, recording the largest month-on-month (m-o-m) decline in vacancy. Its vacancy rate fell by 0.8 percentage points to 8.0% at the end of July, reflecting continued leasing momentum in the market.
Sam Gourlay, Head of Office Leasing Advisory at JLL in Hong Kong, said:
“Hong Kong’s office leasing market gained further momentum in July, with net absorption reaching 313,000 sq ft. Financial institutions, banks and professional services firms remained the primary drivers of demand. Based on our discussions with financial-sector clients, preferences among funds establishing a presence in Asia have shifted markedly. In 2025, seven out of 10 new setup funds chose Singapore, compared with two selecting Hong Kong and one choosing Tokyo. This year, the trend has reversed, with over 70% opting for Hong Kong. We expect this demand to continue supporting the recovery of Central’s Grade A office market.”
Among notable leasing transactions during the month, Ares Management Asia (Hong Kong) expanded its presence at Gloucester Tower in Central by leasing an additional 12,000 sq ft floor.
Cathie Chung, Senior Director of Research at JLL, added: “Overall office rents rose 0.8% m-o-m in July, supported primarily by rental growth in Central and Tsimshatsui, where rents increased 1.5% and 0.5%, respectively.”
