How has the vacancy rate for grade A office buildings in Hong Kong evolved over time, and what are the implications of its current level?

 

The vacancy rate in Hong Kong’s Grade A office buildings has changed significantly over time, and is largely influenced by market dynamics, economic trends and external factors. Here is an overview of its evolution and what current levels mean:

Evolution over time

1. Before 2019 (stable demand): Before 2019, Hong Kong’s Grade A office market developed strongly, with a low vacancy rate (less than 5%) due to strong demand from financial institutions, multinational corporations and Chinese companies. Office rental rates in central areas such as Central are among the highest in the world. 2. 2019-2020 (Protests and COVID-19 Impact): Vacancy rates began to rise after the 2019 protests and were exacerbated by the COVID-19 pandemic. Many