Savills

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Hong Kong Office Leasing – Oct 2023

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Contacts & Related Research

 

Office Leasing Market Faces Downward Adjustment

  • Hong Kong Grade A office rents decline by 2% in Q3/2023, driven by shrinking demand.
  • Vacancy rate drops by 0.4% due to displacement demand from the imminent redevelopment of KITEC.
  • Market dominated by cost-saving moves, with landlords offering flexible leasing arrangements and assistance with renovation works.
  • Resilience seen in certain sectors like quantitative trading firms and high-end retail.
  • Savills projects that office rents in Hong Kong will range from 0% to -5% in 2024.

The office market is dominated by cost saving moves with new demand hard to come by. More pessimistic outlook may accelerate the full downward cycle. 

Jack Tong, Savills Research & Consultancy
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