Hong Kong Figures - Office Q3 2023

October 13, 2023 5 Minute Read

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  • Gross office leasing volume grew by 32% q-o-q to 1.0 million sq. ft. this quarter, on par with Q1 2023. Public entities dominated expansionary demand, while requirements from other sectors remained limited. While some tenants continued to search for fully-fitted office space to minimise CapEx, most companies put expansion plans on hold.
  • Net absorption turned positive in Q3 2023, registering 209,000 sq. ft.. Greater Central and Hong Kong East recorded large declines in occupancy, but Kowloon saw an increase in occupancy, partly due to some forced relocations in Kowloon Bay.
  • The lack of new supply and positive net absorption ensured overall vacancy declined marginally by 0.2-ppt to 15.8%. Total vacant space remained high at 13.6 million sq. ft..