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City Snapshot – HONG KONG Q1 2025

Andy Willett · 1 min read
City Watch office sector snapshot: Hong Kong, Q1 2025
Hong Kong market overview: leasing activity rebounds amid market adjustments. Gross leasing volume rose 12.4% quarter on quarter to 855,300 sq ft, the first rise since Q1 2024, driven mainly by relocations and consolidations. Grade A rents fell 1.3%, with Hong Kong East down 3.4%, and overall vacancy rose to 13.7%, reaching 21.3% in Kowloon East.
Hong Kong new supply: about 1.2 million sq ft completed in Q1 2025, with Harbour East Tower and Kowloon Bay Business Centre expected to add a further 2 million sq ft by the end of 2025, putting more downward pressure on rents, especially in decentralised locations.
Hong Kong, what to watch: occupiers can negotiate favourable lease terms, investors may find value-add opportunities in decentralised areas, landlords need to strengthen amenities and ESG credentials, and rents are projected to fall by 5 to 10% over the year.
Sources: CBRE, Hong Kong Figures Office Q1 2025; JLL, Market Sentiments Improve Despite Falling Rents and Prices in Q1 2025; Colliers Quarterly Market Report Q1 2025.
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