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Hong Kong Office Leasing – Q2 2026

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Contacts & Related Research

 

Hedge Fund Pre-Leasing Drives Central Recovery as Hong Kong Grade A Office Market Sees Highly Selective Rental Growth

  • Central Leading the Rental Recovery
    Central Grade A office rents rose 4.8% QoQ in Q2, while vacancy declined from 10.2% to 9.4%. Net take-up reached 312,000 sq ft in 1H 2026, driven by financial institutions seeking premium space 

  • FOMO-Led Forward Leasing by Funds
    Hedge and quantitative funds are securing large contiguous floors ahead of target headcounts, reserving expansion space amid scarce availability and creating a disconnect between leasing demand and current staffing requirements

  • Growing Tenant Concentration Risk
    Central Yards, LHT Tower, Central Tower, The Henderson and Two IFC have significant fund exposure, increasing short-term vacancy volatility should major occupiers downsize or release sublease space

  • Non-Core Districts Remaining Under Pressure
    Kowloon East and Kowloon West rents fell 1.4% and 0.9% QoQ, respectively, amid structural supply pressure and subdued demand outside the fund, wealth management, insurance and IPO-related sectors

  • Slower Supply Supporting Premium Assets
    Grade A completions will average approximately 600,000 sq ft annually during 2026–2032, versus 2 million sq ft during 1996–2025, supporting medium-term rental performance in Central and Tsim Sha Tsui

Prime Central is no longer just recovering; it is being actively tightened by forward leasing from hedge funds and quant funds that are prioritising space security over immediate utilisation.

Jack Tong, Director of Savills Research & Consultancy
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