Relocation wave creates opportunities across Hong Kong office market

Spillover demand from Central supports adjacent districts.

Hong Kong’s office market is seeing both tightening conditions in core districts and emerging opportunities for occupiers and landlords as relocation activity builds, particularly within the financial services sector, according to Knight Frank.

The firm noted that strong transaction activity from finance tenants has reinforced confidence in Premium Grade-A offices in Central, with leasing momentum increasingly spilling over into nearby submarkets such as Sheung Wan, Admiralty and Wan Chai North as occupiers broaden their search amid limited availability.

“Speed to market is becoming increasingly important,” said Jonathan Wright, Senior Director, Hong Kong Office Strategy & Solutions at Knight Frank. He added that tightening vacancy in premium buildings is pushing occupiers to act more decisively, while landlords have an opportunity to secure longer-term leases and improve rental stability.

Knight Frank also highlighted that upcoming relocations in 2026 are expected to release sizeable space back into the market, creating short-term opportunities for occupiers while maintaining underlying tightness in high-quality stock.

The firm said momentum remains concentrated in Premium Grade assets in Central and West Kowloon, supported by growth in financial services and mainland China-linked corporates. As larger occupiers relocate, opportunities are emerging both in vacated space and in quality buildings outside traditional core areas, while landlords are increasingly using asset enhancement, upgraded amenities and flexible leasing terms to support occupancy.

Looking ahead, Knight Frank expects rental performance across Hong Kong’s office market to remain uneven. Premium Grade assets in Central and Sheung Wan are likely to continue outperforming due to strong demand and tightening vacancy, while Admiralty, Wan Chai, North Point and traditional Central are expected to remain stable amid limited new supply.

By contrast, areas including Causeway Bay, Quarry Bay and Wong Chuk Hang may face near-term pressure from recent and upcoming supply, prompting landlords to compete more aggressively on incentives to attract and retain tenants.