Tsimshatsui office vacancy drops to 6.7% in June

Business growth in insurance and wealth management drives the improvement

Vacancy rate for Grade A offices in Tsimshatsui fell by a further 0.4 percentage points to 6.7% at the end of June, according to JLL’s latest Hong Kong Monthly Market Dynamics released today. Tsimshatsui, together with Central, recorded the most significant improvements in both vacancy rates and rents among the major office submarkets.

Tsimshatsui’s vacancy rate peaked at 11.2% in September 2022. However, supported by growing wealth inflows from mainland China, leasing activity from the insurance and wealth management sectors has rebounded, driving demand for office space in the district. As a result, vacancy rates in Tsimshatsui have continued to improve since 2025, reinforcing the district’s recovery momentum.

Alex Barnes, Co-CEO at JLL in Greater China, said:

“Vacancy rates in Tsimshatsui have fallen to the lowest level among Hong Kong’s major business districts. One Peking, one of the district’s landmark office towers, achieved fully occupancy in June for the first time in 2024. We expect vacancy rates in the district to continue declining in the second half of the year, as the district is well positioned to benefit from spillover demand from Central.”

In June, Hong Kong’s office leasing market recorded positive net absorption of 279,000 sq ft. One of the major transactions during the month was RGA Reinsurance’s lease of an entire floor totalling 23,500 sq ft at Two Taikoo Place in Quarry Bay.

The overall office vacancy rate declined to 13.1% as at end-June, with vacancy rates in Central and Kowloon East falling by 0.4 ppts and 0.5 ppts m-o-m, respectively.

Cathie Chung, Senior Director of Research at JLL, added:

“Overall Grade A office rents rose by 0.1% m-o-m. Central remained the primary driver of rental growth, recording a 0.6% m-o-m increase. Meanwhile, rents in Tsimshatsui increased by 0.5%, reflecting continued leasing momentum in the district.”