Grade A office market sees 3% QoQ rent decline in Q1

Demand shifted towards spaces under 4,000 sq. ft. NFA.

The demand for Grade A office space in Hong Kong saw a slight decrease in the first quarter of 2025 (Q1), resulting in a 3% quarter-on-quarter (QoQ) drop in overall rents to $47.2 per square foot, according to Colliers.

Amongst the districts, the core Central/Admiralty experienced a sharper drop, with rents down by 3.8% QoQ.

Demand shifted towards smaller office spaces, with 65% of new leases in Q1 involving spaces under 4,000 sq. ft. Net Floor Area (NFA).

The market also saw a negative QoQ take-up of 0.22 million sq. ft. NFA, whilst the vacancy rate rose to 17.5%. Kowloon East recorded the largest increase in vacancies.