Hong Kong office sentiment weakens despite leasing interest

Firms are occupying spaces at both central and decentralised areas.  

Whilst the overall outlook for the Hong Kong office market is "downbeat", high-quality spaces in prime areas are still seeing strong interest, CBRE Group said in its Asia Pacific Q3 2025 Office Trends report.  

Office leasing in the Greater Central is driven by renewed activity in the finance and insurance sectors, whilst decentralised areas are attracting upgrading demand.

A trading firm secured a pre-leasing deal in a future development along the Central harbourfront, and this signals a “continued demand for prime core office space,” the real estate and investment services said.  

At decentralised areas during the quarter, this trend was also seen as an insurance firm expanded its footprint in Hong Kong East, and a mainland Chinese bank that relocated to a new building in Kowloon East. An international school also took an office in the same location. 

As a result, landlords in decentralised areas are implementing flexible lease terms to attract renters, and “the rental gap between submarkets outside of Greater Central is diminishing,” CBRE said.

CBRE advised that occupiers that are targeting core premium spaces need to act quickly as vacancy and rental in the Greater Central stabilise.

Landlords of properties in submarkets that are competing for tenants should consider providing fitout packages and CapEx subsidies in tenants’ lease terms, the firm added.