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Cheryl Arcibal

Hong Kong’s office property market is likely to see its empty spaces plateau at 14 per cent as vacancy rates in Central fell to more than a three-and-a-half-year low in June, according to JLL.
The property consultancy said that although the overall vacancy rate for the office property sector fell to 13.1 per cent in the first half, the supply pipeline would increase the number of office spaces and plateau at 14 per cent in the coming months.
“Another 2 million square feet of office space will be completed,” said Sam Gourlay, head of office leasing advisory at JLL in Hong Kong.
Premium office vacancy rates in Central dropped to 8.8 per cent, the lowest in 43 months, JLL said. In May, prime office vacancy rates in the area stood at 9.2 per cent compared with 10.9 per cent at the end of 2025.
For instance, new buildings such as Central Crossing in the city’s main business district were set to be completed this year, according to JLL.
Despite the new supply, JLL forecast there would be as much as a 5 per cent rise in overall prime office rents in Hong Kong for the full year, following the 3.2 per cent increase in the first six months.
Central would lead with a 10 to 15 per cent increase for the entire year, followed by the 0 to 5 per cent increments in the districts of Wan Chai/Causeway Bay and Tsim Sha Tsui.
However, both Hong Kong East and Kowloon East were likely to see rents decline by 0 to 5 per cent in 2026.
“We have revised our forecast for Central grade A office rents, reflecting stronger leasing demand from financial institutions and related companies,” Gourlay said.
In particular, office buildings such as One and Two International Finance Centre (IFC) in Central recorded rental increases of 23.4 per cent and 20.2 per cent, respectively, both exceeding HK$130 (US$16.60) per square foot.
The rental increases would be supported by a number of existing tenants that “were expanding”, Gourlay said.
“There’s also a queue of [would-be] tenants, who are all trying to get into the buildings as well, so it’s a mix,” he said.
In June, fintech company iCapital more than doubled its office footprint, leasing a 9,000 sq ft space in One IFC as it sought to capture rising demand for wealth-management services in Asia. The firm’s previous office was in the St George’s Building on Ice House Street, also in Central.
Meanwhile, if office rents in Central rise above HK$140 per square foot on the back of rising demand, then “the resulting spillover demand could broaden the recovery more notably beyond a single district,” Gourlay added.
Additionally, despite a potential interest rate increase before the end of the year, the decisions of the firms fuelling demand for office space in Central were “not contingent on interest rates,” he said.


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Despite increased supply and a vacancy rate plateauing at 14 per cent, prime office rentals will rise up to 5 per cent this year, says JLL


Despite increased supply and a vacancy rate plateauing at 14 per cent, prime office rentals will rise up to 5 per cent this year, says JLL.


Hong Kong office vacancy rates to plateau as Central hits 43-month low

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Despite increased supply and a vacancy rate plateauing at 14 per cent, prime office rentals will rise up to 5 per cent this year, says JLL

Despite increased supply and a vacancy rate plateauing at 14 per cent, prime office rentals will rise up to 5 per cent this year, says JLL