Gao Li: The vacancy rate of grade A office buildings in Hong Kong is expected to rise to around 19% by the end of the year, with rents falling by about 7% for the whole year.

Diversified professional service and investment management company Colliers International has released the "Colliers Market Report | Q3 2025." Colliers Hong Kong's Head of Corporate Client Services, Yan Huiping, predicts that by the end of 2025, the vacancy rate of Grade A office buildings in Hong Kong will rise to about 19%. Although the market absorption continues to improve, the completion volume of new projects still exceeds the demand for new leases, leading to an overall increase in vacancy levels. Despite some improvement in leasing activities, the market still faces supply and demand imbalance issues. Landlords are actively adopting more flexible leasing strategies to enhance competitiveness, and it is estimated that the annual rent for Grade A office buildings in Hong Kong will drop by about 7%. Li Wanyin, Head of Research and Retail Advisory in Hong Kong, stated that prime street shops in core areas are expected to record steady growth, mainly benefiting from stable leasing demand from diverse tenants, including food and beverage operators. On the other hand, brands with popular characters as themes are gradually attracting market attention. Meanwhile, Hong Kong's government actively promoting specialty tourism is expected to attract high-spending tourists, further boosting retail market recovery and growth. Yan Huiping also said that in the face of weak demand and increasing vacancy pressures, landlords are actively offering more flexible terms to attract tenants. It is expected that by the end of 2025, industrial rents will drop by about 10%. The market is undergoing structural changes, and activation measures led by policies will take time to have a substantive impact on the supply side. Zhao Cong, Head of Capital Markets and Investment Services at Colliers Hong Kong, pointed out that the optimization measures of the Capital Investment Entrant Scheme (CIES) announced in the Policy Address will further enhance investor confidence and attract funds into the Hong Kong property market. Colliers expects luxury homes, strata-titled office buildings, and street shops to benefit from this, while student dormitories and redevelopment projects will also become market focuses, with transaction volumes expected to remain stable.