Hong Kong’s premium office market is inching out of a six-year downturn, with the Central district once again leading a tentative recovery in rents and absorption even as overall vacancy remains elevated.
Vacancy in Central’s “Grade A” or most prestigious towers fell to 10.1 percent at the end of January, its lowest level since 2023 and down from a recent peak of 12.2 percent in September 2024, according to data cited by JLL. Central also drove a 0.3 percent rise in citywide office rents in January, with its own rents climbing 1.2 percent while most other submarkets slipped, marking the fourth straight month of growth.
The overall Grade A vacancy rate edged down to 13.5 percent, from 14.1 per cent a month earlier, on net absorption of nearly 590,000 square feet, helped by finance-sector deals such as Turiya Capital’s move into the Henderson office tower.
Consultancies say the upturn has been building since late 2025. JLL figures show overall office rents rose about 0.7 percent quarter on quarter in the final three months of last year, with Central and Tsim Sha Tsui recording increases of 1.5 percent and 1.2 percent respectively.
[See more: Hong Kong’s ultra-luxury property market is staging a decisive comeback]
CBRE separately reported a 0.6 percent quarter-on-quarter rise in Grade A rents in the same period – the first increase since 2019 – even though full‑year rents were still down 2.9 percent. Cushman & Wakefield tracked stronger net absorption in Central and adjacent districts in 2025, describing it as the most active leasing year since 2019, supported by hedge funds, asset managers and other financial institutions.
Analysts describe 2026 as a year of divergence, with true prime space in Central tightening while other towers on Hong Kong Island and in decentralised districts remain under pressure. Knight Frank forecasts that although Grade A rents on the island as a whole could be flat to down 5 percent this year, premium Central offices may post rental growth of up to 8 percent as high-quality floors are gradually absorbed.
Senior realtors say finance, wealth management and professional services will continue to anchor demand in core areas, as tenants use still‑attractive rents to upgrade space or consolidate.
