What’s driving office leasing demand on Hong Kong Island?

Several financial firms recorded expansions in December.

Office leasing demand in Hong Kong’s Central district continued to be driven by mainland Chinese financial institutions and steady activity from the wellness sector, according to a report by Knight Frank.

The consultancy said demand from PRC companies linked to initial public offering (IPO) activities has been rising, while banks and investment funds from the mainland continue to underpin leasing transactions and office expansions on Hong Kong Island, particularly in Central.

In December, Three Garden Road saw several financial firms undertake in-house expansions, collectively taking up about two floors, or roughly 32,000 sq ft, Knight Frank noted.

Leasing momentum in the wellness sector also remained stable in Central. A medical centre recently leased two floors at the China Building, accounting for approximately 20,000 sq ft, the report said.

Knight Frank added that the sustained interest from financial and healthcare-related tenants highlights Central’s continued appeal as a core business district, despite broader market uncertainties.