Office prices decline by 7.8% YoY in 2023: report

Grade A, B, and C offices decreased by 2%, 11.5%, and 7.9%, respectively.

The overall office prices dropped by 7.8% between Q4 2022 and Q4 2023, with Grade A, B, and C offices decreasing by 2%, 11.5%, and 7.9%, respectively, according to Hong Kong Property Review 2024.

Grade A office prices showed modest growth in the first quarter but declined by 2% in Q4 2023 compared to the same period in 2022. Rents also eased throughout the year, with a slight decrease of 1.7% between Q4 2022 and Q4 2023.

Meanwhile, grade B office prices dropped at the start of the year. It recovered in Q2, but declined sharply later, ending 2023 with an 11.5% drop compared to Q4 2022. Rents showed minor fluctuations, registering a mild increase of 0.7% year-over-year (YoY) in Q4 2023.

Grade C office prices dipped in the first quarter, then consolidated in Q2 before slipping further in the remaining quarters, registering a drop of 7.9% between the fourth quarters of 2022 and 2023.

Following a moderate drop in Q1 2023, rents rose gradually before dropping again in the last quarter, posting a mild increase of 0.6% in Q4 2023 over the same period in 2022.