Hong Kong Grade A office vacancy rate falls to 16.1% in Q2

Net take-up hit 864,000 sq ft during the quarter.

Hong Kong's Grade A office market gathered pace in the second quarter of 2026, with strong leasing activity reducing vacancy and prompting Colliers to upgrade its rental growth forecast for the Central and Admiralty office market.

According to Colliers, net take-up reached 864,000 sq. ft. during Q2, lowering the overall Grade A office vacancy rate by one percentage point to 16.1%. Central and Admiralty continued to lead the recovery, recording 182,000 sq. ft. of net absorption and marking a fourth consecutive quarter of positive leasing activity. Vacancy in the CBD fell to 10.2%, down 4.3 percentage points from a year earlier.

Rental performance remained mixed across the market. Colliers said rents in Central and Admiralty rose 1.9% quarter-on-quarter and 5.5% year-to-date, while decentralised office districts continued to weaken, with Kowloon East rents declining 2.9% over the quarter.

Fiona Ngan, Head of Occupier Services at Colliers Hong Kong, said demand in core office districts would continue to underpin the broader market through the remainder of 2026, despite around 1.2 million sq. ft. of new office supply scheduled for completion in the second half of the year.

Colliers has upgraded its forecast for Central and Admiralty office rents to increase by between 5% and 8% this year, while maintaining its expectation that rents in Kowloon East will decline by more than 5% in 2026.