Hong Kong Island prime office rents rise 20.7% in YTD August

And prime office vacancy fell to 8.5%.

Hong Kong's prime Central office market has reached an inflection point, with Premium Central vacancy tightening to 8.5% and rents rising 20.7% year to date, according to Knight Frank's August 2026 market report.

Knight Frank said the market has bottomed out faster than anticipated, supported by an aggressive flight to quality and sustained demand from global and mainland financial institutions. Demand for core Grade A harbourfront buildings is now rapidly outstripping the availability of prime contiguous space, the agency said.

The shift is also evident among some of Central's largest buildings. Cheung Kong Center II and The Henderson, which had previously weighed on market absorption, are now nearing full occupancy, according to Knight Frank.

The agency highlighted several significant commitments, including a three-floor lease by a US quantitative trading firm and a two-floor commitment from a mainland securities house. These deals have helped accelerate the absorption of space in the trophy towers.

Activity is also picking up in Causeway Bay, where Lee Garden Eight recorded a sharp increase in leasing activity and attracted multiple offers in August, Knight Frank said.

Overall, the August data points to a market in which demand for high-quality Central offices is strengthening while the supply of suitable contiguous space remains constrained, according to the agency.