Corporates snap up Hong Kong offices for self-use as prices fall

Nine of the ten largest office transactions involved tenants purchasing assets for their own use.

Hong Kong’s office market is witnessing a growing shift toward owner-occupier acquisitions, as corporates and institutions take advantage of lower prices and improved sentiment to purchase space for self-use, according to Knight Frank.

In its latest commentary, Knight Frank noted that nine of the ten largest office transactions by consideration have involved tenants buying assets for occupation rather than investment, highlighting a clear structural shift in demand.

Following a significant price correction over recent years, a range of buyers—including statutory bodies, banks and educational institutions—are opting to acquire office space to secure long-term occupancy, gain greater control over their premises, and reduce exposure to rental volatility.

The trend is also being driven by corporates such as Li Ning and Alibaba, which are acquiring office assets for self-use and flagship positioning in Hong Kong, reflecting confidence in both their business outlook and the city’s long-term role as a regional hub, according to Knight Frank.

While such acquisitions may temporarily increase vacancy in certain buildings, Knight Frank said the broader shift is blurring the traditional distinction between occupiers and investors, as end-users increasingly behave like capital market participants.

“Investment prospects in the office sector are found in high-quality offices located in prime areas,” said Antonio Wu, Head of Capital Markets, Greater China at Knight Frank. He added that mainland Chinese firms are expanding their Hong Kong footprint through acquisitions, with newly built harbour-view offices and large, single-owned assets particularly sought after for efficiency and operational control.

Knight Frank said the growing prevalence of user-led acquisitions is reshaping Hong Kong’s office market dynamics, reinforcing demand for prime assets while redefining traditional leasing and investment behaviour.