Hong Kong Island prime office rents slip 0.7% in H1 | Realestate Asia

Hong Kong Island prime office rents slip 0.7% in H1

But overall rents in Central and Admiralty inched up 0.4%.

Overall Grade A office rents on Hong Kong Island recorded a slight drop of 0.7% in 1H22, according to a report by Knight Frank. 

However, supported by growing leasing demand in core areas, overall monthly rents in Central and Admiralty registered a growth rate of 0.4% in both areas in 1H22, standing at HK$114.7 and HK$73.9, respectively, per sq ft in June. The office upgrade trend, driven particularly by MNCs, continued in Central. 

Here’s more from Knight Frank:

Recently, U.S. investment firm Millennium Capital Management expanded its office space, leasing an additional 8,700 sq ft in Two IFC, while a foreign PE fund upgraded its office to 7,500 sq ft. in Two IFC. 

Apart from the strong rivalry among office buildings to retain tenants, competition between landlords and co-working service providers is also fierce. Unlike traditional leasing contracts, landlords are now more willing to offer flexible lease terms and provide fully fitted space for tenants. With the downward adjusted rent, more tenants are reconsidering the traditional office options. For example, Canadian corporation PSP Investment moved from a serviced office in Prosperity Tower to Two IFC, leasing 4,500 sq ft. 

Compared with the pre-covid period, the current rents on Hong Kong Island, especially in sought-after buildings in Central, are more affordable, fueling the recentralisation trend. We expect demand for prime locations to continue to grow and support overall leasing momentum, driving moderate rental growth in 2H22.


Follow the links for more news on

Join Realestate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!