Hong Kong office vacancy rate to rise to 19% by year-end

And Grade A office rents are expected to decline by 7%.

In a recent report, Colliers revealed it anticipates high absorption for Hong Kong’s office market for the full year 2025, driven by pre-committed leases for developments expected to due before year’s end. However, these projects will also increase overall vacancies.

“We project that vacancies will climb to roughly 19% by the end of 2025.”

Here’s more from Colliers:

Our 2025 Occupier Survey shows that the sectors of Insurance and technology, media, and telecoms are most likely to grow in the next 12 months, with 36% and 35% of respondents planning to expand office space, respectively. Financial-market recovery would help improve demand from the banking and finance sector.

Grade A office rents will likely decline by 7% for full-year 2025, and the rate of decline is expected to slow in 2026 as leasing activity continues to increase, signalling a gradual improvement in office demand compared to recent quarters.