Market recovery delayed
Market uncertainties since the start of 2022, including the outbreak of Omicron, geo-political tensions and stock market volatilities, have disrupted the decision-making process of occupiers, slowing office leasing momentum in Q1.
The market also saw office space demand weaken in Q1, largely due to inspection activities being held up with tightened social-distancing measures from the 5th wave of COVID-19.
- Overall net take-up recorded a rebound of 157,000 sq. ft. in Q1
- Vacancy in the CBD edged up to 9.2%
- Overall Grade A office rents corrected with a 1.3% QoQ drop
- Kowloon East remained a popular submarket for cost-saving tenants looking to downsize or relocate