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Office Market Review

September 2020

It is not all doom and gloom, and office leasing opportunities abound in Hong Kong.

Amidst the challenge of Covid-19, the political uncertainty for the territory and a weak leasing market, there are still a few silver linings around.

To get the whole story and the latest office rental rates

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Hong Kong Office Market Update Sep 2020

Hong Kong
Office Market Update
September 2020

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Market Research Archive
  • Falling rents – overall rents are down by 11% from their peak in Q2 2019. We predict a further fall for the full year of 2020 of around 18 - 20% in the prime CBD area (Central/Admiralty) and 14% overall. Thus, offices will continue to become more affordable.

  • The CBD office vacancy rate has increased to around 6%, which means a much wider choice of stock for tenants to pick from.

  • Much has been written about competition from other regional financial centers, such as Singapore, but Hong Kong will still remain the gateway to China.

  • Landlords have become far more flexible in an endeavor to retain tenants and secure new ones – hence more room to negotiate on the rates, rent free periods and more flexible lease terms.

  • It is also simpler to set up a business in Hong Kong than say Singapore, where foreign firms need to team up with a local partner.

  • Demand will continue to be led by sectors such as finance, insurance, banking and business services, especially for mainland China.

  • Closer integration of the Greater Bay Area with its many incentives will help strengthen Hong Kong's competitiveness.