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Salina Li

Hong Kong’s largest flex-office provider, International Workplace Group (IWG), has opened a new 10-storey facility in Central, as the rise in stock market confidence and listing activities supported the recovery in the city’s office market, according to property consultants.
IWG on Wednesday opened the company’s 22nd workspace location in Hong Kong at The Voeux, located at 102-104 Des Voeux Road, which offers more than 6,400 square feet of flexible office space to cater to the needs of businesses of various sizes.
“As an important business hub, Central is a fantastic place for us to boost our expansion plans,” said Mark Dixon, the founder and CEO of IWG. “Our workplace model is proven to increase productivity and allows for a business to scale up or down at significantly reduced costs.”
According to IWG, it would likely add one more workspace centre before the end of this year.
IWG’s confidence in local demand reflected how hybrid working continued to help businesses in the city stay resilient and competitive, especially in times of economic uncertainty.

Hong Kong’s grade A office market recorded a net absorption – the difference between the space vacated and the space leased – of 401,000 sq ft in the third quarter this year, the highest recorded since the second quarter of 2019, Cushman & Wakefield said on Wednesday. That take-up was the result of improved market sentiment and leasing momentum, the property consultancy added.
Signalling signs of a recovery, Cushman said some 3.37 million sq ft of office space were leased during the first three quarters of this year. That surpassed the record total of 3.36 million sq ft in 2024, while being on par with the pre-pandemic level.
With the improved demand, the decline in rents has also narrowed. Across all districts, from prime Central to Kowloon East, the average rent per square foot stood at HK$43.1 (US$5.54) in the third quarter, which was down 0.8 per cent quarter-on-quarter, compared to a 0.9 per cent drop recorded in the three months to June.
Prime Central, which consisted of 14 prime office buildings, bucked that trend with a modest 0.6 per cent increase in rental, lifted by the city’s buoyant stock market and initial public offering activities that stimulated leasing, Cushman said.
Still, it was too early to assess that office rents have bottomed out, according to John Siu, managing director at Cushman & Wakefield Hong Kong. “The narrowing decline in rents signalled that further significant drops were unlikely,” he said.

Hong Kong’s office market faced challenges, as new supply continued to be introduced throughout this year, given the better-than-expected leasing sentiment in the first three quarters. Cushman adjusted its full-year forecast for office rents to decline from 4 per cent to 6 per cent.
New supply will only begin to decrease in 2026 and 2027, with the office market currently still in a digestion phase, according to Siu. “The key to market performance lies in the financial and banking sectors,” he added. “It will take time for the market to stabilise and rebound.”
Hong Kong’s residential property market, meanwhile, was expected to see a slight recovery, with home prices posting a 2 per cent rebound this year, on the back of improved market sentiment and further interest rate cuts by the US Federal Reserve, according to the property consultancy.
It pointed out that monthly property sales transactions have been above 5,000 for seven consecutive months since March this year, which marked the first time this had occurred since 2021.
“Residential market sentiment continued to be supported by the relatively low Hibor, relaxation of stamp duty and the active launch of primary sales,” said Rosanna Tang, executive director and head of research at Cushman & Wakefield in Hong Kong.
Property developers have hastened new sales amid improving buying sentiment. Henderson Land, for example, priced the first 50 units at its Woodis project in Wan Chai at HK$22,888 per sq ft on Wednesday.
The price of that 167-unit project was on par with neighbouring flats in the secondary market and about 5 per cent cheaper compared to new projects nearby, the developer said. Midland Realty estimated that about 40 per cent of the buyers of the project would be investors, with rental yields reaching around 4 per cent.
Cushman & Wakefield expected full-year transaction volume in the residential market to increase 13 per cent from the 2024 level, with deals for up to 60,000 units.


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The grade A office market recorded a net absorption of 401,000 sq ft in the third quarter, the highest since the second quarter of 2019


The grade A office market recorded a net absorption of 401,000 sq ft in the third quarter, the highest since the second quarter of 2019.


Hong Kong’s largest flex-office provider opens new workspace facility as demand improves

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The grade A office market recorded a net absorption of 401,000 sq ft in the third quarter, the highest since the second quarter of 2019

The grade A office market recorded a net absorption of 401,000 sq ft in the third quarter, the highest since the second quarter of 2019