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Hong Kong’s battered office sector showed cautious signs of life in 2025, supported by improved take-up in core districts and a slower pace of rental declines and –. while analysts said that trend was set to continue into 2026 – rents were unlikely to rise over the next six months.
The coming year was expected to build on the market’s momentum, with stabilisation emerging as the dominant theme, analysts said.
Vacancy rates in prime assets in core districts were likely to steady further, but elevated supply meant landlords might have to wait at least six months before a sustained rental recovery.
“The Hong Kong office market is showing definitive signs of recovery,” said Kathy Chan, an equity analyst at investment research firm Morningstar. “A revitalised initial public offering market has bolstered the financial and professional services sectors, driving office leasing activity to levels that surpass the annual totals of both 2019 and 2024.”
The improvement in 2025 was reflected in stronger net absorption in key districts, the smallest full-year rental decline since 2019 and increased investment activity, according to CBRE. Hong Kong recorded 2.1 million sq ft of net absorption for the full year, the largest annual total since 2018, the consultancy said.
Central led in the fourth quarter, recording 234,800 sq ft of net absorption, its highest since the second quarter of 2015. The full-year figure reached 496,000 sq ft, the strongest annual total since 2007, CBRE said in a report released on Monday.
