The observatory said Saola has weakened from a super typhoon to a severe typhoon, as it gradually departs Hong Kong.
But forecasters said late on Friday that the Hurricane Signal No 10 will remain in force for some time, and the public should stay where they are and remain on high alert.
"The destructive storm force and hurricane force winds of Saola are still affecting the territory," the observatory said.
It said Saola was centred about 40 kilometres south-southwest of the observatory headquarters in Tsim Sha Tsui at midnight, and is forecast to move west at about 14 kilometres per hour across the vicinity of the Pearl River Estuary.
Forecasters warned of rising sea levels over the coastal areas, saying there would be serious flooding in such areas in the New Territories such as Sha Tin, Tai Po, Sha Tau Kok and Sai Kung.
Meanwhile, authorities said that up until 9.40pm, 14 people had gone to public hospitals for injuries sustained during the storm, while more than 450 people sought refuge at the administration's temporary shelters across the SAR.
Officials also confirmed 10 cases of flooding along with 55 reports of fallen trees.
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Last updated: 2023-09-02 HKT 00:40