Office vacancy rates continued to worsen last month in more business districts in the city including Central, Wan Chai, Causeway Bay and Tsim Sha Tsui, JLL said in its latest report. Rents fell by 1.1 per cent from August, the property consultancy said.
“It would take some time to climb out of the trough, especially now enterprises are still finding it challenging to expand [their office space],” said Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank.
The market is facing an oversupply situation as vacancy rates hold near all-time highs, according to consultancy CBRE. Hong Kong developers and landlords are set to add about 3 million square feet of new office space next year, the firm forecasts, compounding a glut.
This is likely to make the vacancy rates worse by the end of 2025, while rents are will be depressed by another 5 per cent, according to CBRE.
