Citywide Grade A office rents risk 3% slump amidst elevated vacancy

Overall vacancy rates hit 17.5% as 14.9 million square feet sit empty citywide.

Hong Kong’s citywide Grade A office rents are projected to decline around 3% this year, with premium CBD assets expected to stabilise whilst non-core districts remain under pressure amidst elevated total vacant stock and persistent competition.

Financial services and education sectors are expected to drive leasing demand, even as vacancy stays high at 17.5% from 16.8%, according to a Colliers Hong Kong report.

Overall vacancy reached 14.9 million sq. ft., as more than 3 million sq. ft. of new supply entered the market in 2025.

“The market will need time to absorb the significant new supply—over 1.24 million sq. ft. in 2026 and 1.58 million sq. ft. in 2027—which will keep competition elevated,” said  Fiona Ngan, Head of Occupier Services at Colliers Hong Kong.

Meanwhile, rents fell 5.8% year-on-year, with Central and Admiralty down 5.6%. Non-core areas such as Island Eastand Kowloon East also continued to face pressure.

However, Grade A office sentiment improved in late 2025, with quarterly net take-up reaching 428,000 sq. ft. in the third quarter (Q3) and 1.23 million sq. ft. in Q4.

Total annual net take-up hit 1.73 million sq. ft., the highest since 2018. Central and Admiralty recorded nearly 400,000 sq. ft. of positive year-on-year net take-up, whilst Kowloon West added 227,000 sq. ft.