Hong Kong’s Grade A office market recorded its strongest first nine-month net absorption since 2018, with a total of 1.8 million sq ft absorbed through the third quarter of 2026, according to CBRE.

The market strengthened significantly in Q3, driven by robust demand from financial institutions in Central. Citywide net absorption reached 858,600 sq ft during the quarter. Central alone accounted for 223,000 sq ft of that total, marking only the fourth time in the past 20 years the district has surpassed 200,000 sq ft in a single quarter.

Rents Rise as Vacancy Falls

The positive absorption helped reduce citywide vacancy by 0.8 percentage points to 15.5%, marking the largest quarterly decline since Q2 2015. This tightening market supported a 3.2% quarter-on-quarter increase in rents, marking the fourth consecutive quarterly rise. Year-to-date rent growth reached 6.7%.

Central saw the most dramatic rental increases, with rents rising 15.8% year-to-date. Central A1 rents led the way with a 24.3% increase, their strongest growth since Q4 2010. While core submarkets also recorded gains, rents in more decentralised locations continued to decline.

Ada Fung, chief operating officer of advisory services at CBRE Hong Kong, stated the market continued to strengthen due to robust Central leasing demand and the highest year-to-date net absorption since 2018. She noted financial institutions remain a key demand driver, with occupiers seeking better-quality offices to improve their workplace experience.

With vacancy rates trending down and business confidence improving, Fung expects prime office locations to remain the best positioned to capture demand and outperform the broader market for the rest of 2026.