This Hong Kong submarket had the highest office vacancy rate in April

The vacancy rate for this submarket reached 12.8% last month.

According to JLL, the leasing market picked up some momentum in April due to the relaxed social distancing measures. Overall net absorption was 249,000 sq ft as tenant demand sustained in addition to the completion of new supply. 

One notable expansion deal is that a PRC bank doubled its presence at One Exchange Square in Central by leasing 13,800 sq ft, NFA. 

Here’s more from JLL:

The overall vacancy rate stood at 9.4% as of end-April due to the completion of new supply. The vacancy rate in Central rose slightly to 7.4% while Kowloon East continued to register the highest vacancy rate among major office submarkets at 12.8%. 

Overall net effective rents remained flat m-o-m in April. Among the major office submarkets, Central registered marginal rental growth of 0.1%, while Tsimshatsui experienced the biggest rental decline. 

Lofter Group has recently partnered with BentallGreenOak and Schroders Capital to acquire the majority portion of 31-37 Hankow Road in Tsimshatsui for a total consideration of over HKD 1.5 billion or an A.V. of HKD 12,953 per sq ft. The building is to be redeveloped into a commercial tower.