Figures
Hong Kong Figures - Office Q1 2025
April 25, 2025 10 Minute Read
Looking for a PDF of this content?
- Leasing momentum improved in Q1 2025, with gross leasing volume rising 12.4% q-o-q to 855,300 sq. ft., the first increase since Q1 2024. Leasing activity was primarily driven by relocation and consolidation, along with some upgrading from non-Grade A office buildings.
- Citywide net absorption was negative for a second consecutive quarter, registering -249,400 sq. ft.. However, Greater Central saw positive net absorption of 40,400 sq. ft. on the back of improved occupancy at The Henderson. Hong Kong East recorded negative net absorption of -61,900 sq. ft., partly due to exits by insurance firms. ICBC’s relocation from Kwun Tong ensured Kowloon East net absorption logged a record low -249,600 sq. ft., the lowest of any submarket for the second consecutive quarter.
- Negative net absorption and 328,100 sq. ft. of new supply caused the overall vacancy rate to rise by 0.6-ppt to a record high 17.5%, equivalent to 15.6 million sq. ft. of empty space.
- High vacancy saw rents fall by 2.2% q-o-q following Q4 2024’s decline of -1.7%. Central rents decreased by 3.1% q-o-q, the sharpest decline since Q1 2024. Hong Kong East lagged, with rents dropping 4.1% q-o-q. Rents in Tsim Sha Tsui rose 0.4% q-o-q due to reduced vacancy.