Hong Kong's office market showed tentative signs of stabilization in 2025, supported by improved take-up in core districts and a slower pace of rental declines, the South China Morning Post reported on Monday.
Analysts expect the momentum to extend into 2026, with stabilization emerging as the dominant theme, the report said.
Vacancy rates in prime assets across core districts are likely to edge lower, although elevated new supply means a sustained rental recovery may not materialise until after mid-year.
Market conditions improved in 2025, reflected in stronger net absorption, the smallest full-year rental decline since 2019, and increased investment activity, according to CBRE, the report said.
Hong Kong recorded 2.1 million square feet of net absorption for the year, the highest annual total since 2018.
Central led in the fourth quarter, posting 234,800 square feet of net absorption, its strongest quarterly performance since the second quarter of 2015, the report added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
