Central leads Hong Kong Island office recovery with strong Q1 rent growth

Rents in Central grew by 5.1% during the quarter.

Leasing sentiment across Hong Kong Island’s office market improved in Q1 2026, with rental growth led by core districts, according to Knight Frank.

Premium Central continued to outperform, recording a 5.1% quarter-on-quarter increase in rents. The positive momentum extended to nearby areas, with rents in Traditional Central and Admiralty rising 5.7% and 2.6% respectively.

In contrast, decentralised submarkets remained under pressure. Rents in North Point and Quarry Bay fell 2.4% q-o-q, while Causeway Bay posted a 0.9% decline, reflecting uneven recovery across the island.

Knight Frank said the finance sector remained the key demand driver. While hedge funds and quantitative firms were highly active last year, leasing demand in Q1 2026 shifted towards traditional securities houses, asset management firms and banks expanding wealth management operations.

Foreign bank expansion also continued during the quarter, with two Middle Eastern banks committing to relocate to CKC II, driven by building upgrades and the need for larger office space.

Looking ahead, Knight Frank expects leasing momentum to strengthen further in Q2 2026, broadening beyond Premium Central to include Traditional Central, Admiralty and Wan Chai as demand gradually deepens across core office districts.