Office rents set to drop 10% in 2025

Vacancy rate stood at 17.3% in the first half of 2025.

Hong Kong’s office market is bracing for further declines in 2025, with rents expected to fall 10% as new supply continues to outpace demand, according to Collier’s Asia Pacific Office Market Insights H1.

Vacancy rates, currently at 17.3%, are projected to climb to about 19% by year-end, driven by the addition of 0.28 million square meters of new office stock in the second half of the year.

Average monthly rents stood at US$73.9 per square meter in H1.

Despite a modest positive net take-up in H1, overall leasing momentum has been muted, with limited appetite for expansion and several major projects nearing completion.

Analysts warned that landlords will likely face mounting pressure to offer more competitive rental packages as supply continues to outweigh demand.