Overall rents in office market increase 2.4% q-o-q in 1Q16

While overall vacancy rate stands at 3.5%.

It has been noted that majority of leasing transactions in Q1 2016 in Hong Kong's office market were for future vacancy or shadow space, leaving the overall vacancy rate at 3.5%.

According to a research note from CBRE, the vacancy level of Grade A Offices in Central stayed at 1.2%. Overall rents rose 2.4% q-o-q in Q1 2016 after rising 8.8% in 2015. Rental growth in Central accelerated to 5.2% q-o-q in Q1 2016 after slowing to 1.7% in Q4 2015.

Here's more from CBRE:

Demand continued to be underpinned mainly by mainland Chinese financial institutions and insurance companies, while activity from non-Chinese firms was mostly relocation or cost driven.

The completion of One HarbourGate in Hung Hom added 416,200 sq. ft. (NFA) of new supply to the market. Its bigger tower of 243,800 sq. ft. (NFA) was pre-sold to China Life Insurance (Overseas) in 2015 for self-occupation.