Hong Kong office performance declines sharply in Q2

Rental dropped by 7% year on year and is expected to continue.

Hong Kong prime office rents in Q2 2025 declined 7% year on year and by 34% since Q4 2019, according to the report by Knight Frank.

Occupancy cost of Hong Kong offices still ranked first in the world with US$145.22 per sq. ft. per year, with vacancy rate steady at 13.5% in Q2 2025.

The report also points to a shift amongst mainland Chinese and Hong Kong firms to explore Southeast Asia for expansion amidst ongoing trade tensions, with interest in the Singapore bourse as regional market entry.

The premium Hong Kong offices once held over Singapore has narrowed to 24% in Q2 2025 from 105% in Q4 2019.

Knight Frank expects the prime office rent to keep decreasing in the next 12 months.