Hong Kong to see an influx of 4m sq ft of new offices until 2026

This is expected to put pressure on office rentals.

According to a Knight Frank report, as we approach the end of 2024, the Hong Kong office market remains challenging, with a high vacancy rate of 13.1% on Hong Kong Island.

“While the Hong Kong office market faces ongoing challenges, there has been modest growth in demand for office space in Hong Kong. Despite the overall challenges, leasing activity has shown some positive momentum, particularly at the newly built office with the provision of high-quality amenities. The banking and finance sectors have been prominent contributors to this trend,” the report said.

Here’s more from Knight Frank:

While the market remains tenant-friendly, landlords have opportunities to attract tenants by offering modern amenities and strong ESG credentials.

Looking ahead, pressure on office rentals is expected to continue, especially with an anticipated influx of 4 million sq ft of new office space between 2025 and 2026. While these new buildings may attract businesses seeking to upgrade or relocate, integrating this additional space will take time. Overall, we forecast a decline in Grade A office rentals on Hong Kong Island from 0% to 3% in 2025.