The vacancy rate of office buildings in Hong Kong has been soaring in recent years. Meanwhile, amid a sluggish leasing market, China’s Shenzhen city has been attempting to attract Hong Kong firms with low rents to set up offices there.
Hong Kong’s High Vacancy Rate
Newly constructed commercial office buildings throughout Hong Kong are having difficulty attracting tenants. According to data from CBRE Group, a U.S.-based commercial real estate services and investment firm, the leasing rates for most new commercial buildings were still below 50 percent in the first quarter of 2024.CBRE data indicated that the average vacancy rate in the first quarter reached an “all-time high” of 16.7 percent or 14.7 million square feet.
