Office Market Net Absorption Reached 183,000 Sq Ft in Q3, Driven by Pre-Committed Space in Hong Kong East
- Written by Viw Magazine
New “0+3” quarantine measure to help reignite business travel, although no immediate boost to tourism activities is anticipated
- Hong Kong's Grade A office market remained generally quiet in Q3, but pre-commitments at new project completions pushed up citywide net absorption to reach 183,000 sq ft
- Overall office rents fell by a further 2.3% q-o-q, although the decline is expected to narrow in Q4, with the full-year rental movement forecast now in a -3% to -5% range
- The retail market is recovering slowly, with retail sales in the first eight months down by 1.5% y-o-y; some retailers have held back on expansion plans in response to a still uncertain timeline for a full border reopening with mainland China
- The recently announced "0+3" quarantine measure will help stimulate outbound spending but may not immediately attract an influx of tourists to Hong Kong, weighing on the short-term retail recovery
