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Hong Kong’s Central office rents set to reverse multi-year slump with gains in second half

Office rents in Hong Kong’s Central district are expected to rise faster in the second quarter of the year, according to analysts, a reversal of…

By Samantha Johnson / May 13, 2026

Office rents in Hong Kong’s Central district are expected to rise faster in the second quarter of the year, according to analysts, a reversal of a multi-year slump that began in the second half of 2019.

The latest forecast was made by US bank Citi, which said premium offices in the city’s main business zone had seen rents rise 1.7 per cent from a trough in October, with room for further increments between the second half this year and 2027.

“Lease negotiation dynamics had started to favour landlords since the fourth quarter of 2025 and strengthening into 2026,” Citi property analysts Griffin Chan and Cindy Li said in a report released on Wednesday.

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The rental improvements would be spurred by broader capital inflows into Hong Kong, capital market activity and overseas expansion of Chinese corporates, they said.

Stronger demand has reduced grade-A vacancy rates in Central to a four-year low of 9.6 per cent.

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Central is not alone in logging gains, with Admiralty absorbing demand outflow from the city’s main business district, while West Kowloon has also seen robust take-ups in rents.

JPMorgan Chase and Banco Santander were among the latest clients attracted to West Kowloon. In March, JPMorgan committed to leasing about 250,000 sq ft for 10 years at Artist Square Towers (AST), making it the anchor tenant of the 700,000 sq ft mixed-use development by Sun Hung Kai Properties (SHKP).

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