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Hong Kong Office Leasing – March 2025

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Hong Kong Office Leasing Market Faces Structural Shifts Amid Oversupply Challenges

  • Hong Kong’s office leasing market is undergoing a structural shift, with hedge funds, asset management companies, and cryptocurrency firms entering the market, leasing approximately 840,000 square feet of space between 2021 to 2024, nearly offsetting the space reduction from investment banks during the same period.
  • Office rents in core CBDs have declined 45% since the 2019 peak.
  • Vacancy rates in Central reached nearly 13% in early 2024, driven by investment bank relocations and new completions, resulting in an estimated 876,000 square feet of vacated space in Central.
  • Despite a rebound in IPO activity (HK$83.4 billion raised in 2024), only 20% of newly listed firms established physical offices in Hong Kong.
  • Cryptocurrency firms are emerging as new tenants, leveraging regulatory support for VATPs and crypto ETFs, though they favor smaller, flexible spaces.

Oversupply remains a key hurdle for office landlords in core CBDs. We are witnessing a structural shift in Hong Kong’s office leasing market, with a resurgence of hedge funds, asset managers and crypto firms moving back to core CBDs amid the downsizing of the investment banking eco-system post Covid.  

Jack Tong, Director of Savills Research & Consultancy
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