Savills

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Hong Kong Office Leasing – February 2026

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Contacts & Related Research

 

Office Market Demand is Recovering, with Financial Recovery and Policy Initiatives Emerging as New Growth Drivers

  • Flight-to-Quality Drives Recovery
    1.8m sq ft net absorption in 2025, led by Central and ICC — tenants gravitate to landmark, transit-linked towers.

  • Vacancy High, But Polarised
    Overall vacancy at 15.5%, yet Central tightens while Kowloon East faces structural oversupply.

  • Finance Fuels Demand
    Funds and asset managers expand 14% YoY, anchoring major core-district deals.

  • Prime Offices Outperform
    Top-tier Grade A maintains 88%+ occupancy, outperforming secondary stock in the same district in a widening quality gap.

  • 2026 Outlook: Core Rebounds
    Prime Central/TST rents +5–7% forecast; limited new supply underpins medium-term rental support.

While headline figures show overall vacancy at a historic high, a closer breakdown by district and building grade reveals that the market has actually entered a new phase of ‘selective recovery.’ Prime Grade A offices in core locations continue to maintain high occupancy, supported by financial tenants, whereas some oversupplied secondary districts will need rental adjustments and repositioning to regain competitiveness.

Jack Tong, Director of Savills Research & Consultancy
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