- Leasing momentum remained slow in Q1 2019, with just 167,100 sq. ft. of net absorption recorded. Two new completions pushed up overall vacancy by 0.6pp q-o-q to 5.2%.
- Global economic uncertainty continued to dent expansionary leasing demand. Despite a few isolated large leasing transactions, leasing volume by banking and finance firms fell by 70% q-o-q. Agile workplace providers committed to just 39,300 sq. ft. of Grade A space.
- Other leasing activity this quarter involved multinationals, including several large insurance and professional services firms, relocating from core locations to areas such as Hung Hom.
- Rental growth continued to lose momentum in core submarkets. Rents in Greater Central edged up by just 0.2% q-o-q, marking the weakest quarterly growth since Q4 2014. In contrast, rents in Kowloon East maintained steady growth, rising 1.7% q-o-q to a new historical high.