Office market snaps back with best rents in 15 years

Vacancy in Central fell to 8.8% by the end of June.

Hong Kong's Central Grade A office market recorded its strongest half-year rental growth in 15 years during the first half of 2026, JLL said.

Central rents climbed 7.3% in the first half, driving overall Grade A office rents up 3.2% — the first meaningful half-year gain since the market correction began in mid-2019.

Rents at Grade A1 buildings in Central have returned to Q3 2023 levels, with benchmark towers One IFC and Two IFC posting increases of 23.4% and 20.2% respectively, both now exceeding $130 per square foot.

The recovery remains concentrated at the top end of the market. Central's Grade A1 rents rose 13.4% year to date, compared with 5.6% for Grade A2 and just 1.4% for Grade A3.

Vacancy in Central fell to 8.8% by the end of June, its lowest level in 43 months.

Wanchai/Causeway Bay and Tsimshatsui vacancy rates have stabilised, whilst Kowloon East and Hong Kong East continue to see vacancies rise. Overall, citywide vacancy stood at 13.1% at mid-2026.

JLL attributes the rebound primarily to a strong Initial Public Offering pipeline and wealth inflows from mainland China, which are driving demand.

Expansion activity is currently concentrated amongst investment funds, insurance firms, legal services providers and fintech companies, with most demand focused on the CBD.

JLL now forecasts Central Grade A rents to rise 10 to 15% for the full year, up from earlier projections, while overall Grade A office rents across Hong Kong are expected to grow 0 to 5%.