The number of office rental deals rose by 27 percent in September from a year ago as the vacancy rate in Central and Admiralty declined.

Hong Kong Island district recorded 12.41 percent building vacancy rate down by 0.31 percentage points from a month earlier.

The gross floor area of commercial buildings rented last month was around 1.08 million square feet, up by 3 percent year-on-year.

In September, the market recorded relatively big rental deals.

Mainland financial institution Far East Horizon (3360) expanded its space by 1.5 times at the International Commerce Centre near Kowloon Station, renting out rooms 01 and 04 to 08 on the upper floors of the tower for HK$70 per sq ft, making it the largest rental deal for the building this year.

Admiralty building vacancy rates fell for a sixth straight month and recorded 7.2 percent office vacancy rate, down by 3.19 percentage points year-on-year.

Besides, Causeway Bay, Central, Sheung Wan and Wan Chai all saw vacancy rates edge down by 0.19 to 0.7 percentage points.

However, the number of rental deals in the city moderately eased by 6.5 percent month-on-month in September while the gross floor area rented decreased by 350,000 sq ft, according to a property agency.

In other news, at least seven banks in the city raised the time deposit interest rate last week with Fubon bank increasing the annual rate for deposits of more than HK500,000 to 3.65 percent and deposits below HK$500,000 at 2.65 percent. The Hongkong and Shanghai Banking Corporation offers up to 3.4 percent annual time deposit interest rate for three-month time deposits.