Central Grade A Office Vacancy Falls to 9.2% in April as Hong Kong Office Real Estate Market Stabilizes

HONG KONG — Central's Grade A office real estate market recorded a vacancy rate of 9.2% in April 2026, declining 0.4 percentage points from the prior month and marking it as the only office submarket in Hong Kong to post a vacancy improvement during the period, according to data released May 21 by JLL.

The improvement in Central helped keep the overall Grade A office vacancy rate stable at 13.5% at end-April, even as vacancies rose across other submarkets. Kowloon East recorded the sharpest increase, with its vacancy rate climbing from 20.4% to 20.7% over the same period.

Central Drives Office Real Estate Rental Growth

Overall Grade A office rents rose 1.2% month-over-month in April, with Central remaining the primary driver of rental growth. Central recorded a 2.1% rent increase over the period, according to JLL's Hong Kong Monthly Market Dynamics report. Wanchai and Causeway Bay also showed early signs of recovery, with rents rising 1.2% month-over-month.

Cathie Chung, Senior Director of Research at JLL, commented on the rental momentum in core locations. "Overall Grade A office rents rose by 1.2% m-o-m in April. Central remained the primary driver of rental growth, recording a 2.1% increase over the period. Meanwhile, rents in Wanchai / Causeway Bay showed early signs of recovery, rising by 1.2% m-o-m," Chung said.

Over the first four months of 2026, Central recorded average monthly net absorption of over 100,000 square feet, reflecting sustained demand in the submarket.

Demand Spills Into West Kowloon

As top-tier buildings in Central approach full occupancy, demand is beginning to extend to newer Grade A developments, according to JLL. Alex Barnes, Managing Director at JLL in Hong Kong, Macau and Taiwan, pointed to Cheung Kong Center II as one example of a development attracting spillover interest.

"As top-tier buildings in Central approach full occupancy, we are beginning to see demand gradually spillover to newer Grade A developments, such as Cheung Kong Center II," Barnes said. "With office leasing demand continuing to be driven by financial institutions, as well as wealth management and insurance firms, West Kowloon is also emerging as a key area of interest, supported by its proximity to the High Speed Rail and tightening availability of premium space in Central."

Grade A office buildings in West Kowloon are attracting tenant interest, particularly from the finance and insurance sectors. BNP Paribas Asset Management leased three high-zone floors totaling 97,500 square feet at International Gateway Centre in West Kowloon, according to JLL's report.

Office Real Estate Vacancy Rates Across Hong Kong Submarkets

The April data reflects a diverging picture across Hong Kong's office real estate landscape. While Central tightened to 9.2%, other submarkets saw vacancy rates hold steady or rise. Wanchai and Causeway Bay ended April at 10.4%, up slightly from 10.3% in March. Hong Kong East rose from 12.7% to 13.3%. Tsimshatsui edged up from 6.8% to 6.9%, while Kowloon East climbed from 20.4% to 20.7%.

In April, the office leasing market recorded positive net absorption of 8,000 square feet overall, with gains in core locations more than offsetting negative absorption in fringe submarkets, JLL reported.

Sources

JLL Hong Kong Newsroom — Only Central's Grade A Office Market Records Vacancy Improvement in April, May 21, 2026