Release Date: 16 August 2026
Source: Knight Frank Hong Kong Market Report Q2 2026, published July 2026
HONG KONG – Knight Frank’s latest research confirms a milestone recovery for Hong Kong Island’s Grade A office market. Average Grade A office rents on Hong Kong Island rose 5.5% year-on-year in the first half of 2026, marking the first annual rental growth since the second half of 2021.
Leasing momentum strengthened visibly, with total net absorption across Hong Kong’s office market hitting 861,000 sq ft in 1H2026, up from 594,000 sq ft recorded in 2H2025. Demand was mainly driven by co-working operators, mainland Chinese start-ups expanding in Hong Kong, family offices and asset management firms.
Central led the market rebound, registering a 10.8% year-on-year rental increase. Prime Grade A towers in Central remained highly sought-after with falling vacancy rates. The market continues to feature a two-speed performance: premium core-area assets enjoy rising rents, while older secondary office stock in decentralised districts faces ongoing rental pressure.
According to Knight Frank, expansion from wealth management firms, mainland enterprises setting up regional hubs, and sustained appetite for flexible workspace underpinned the upturn. Analysts expect the rental recovery to persist for prime office buildings, whereas non-core office stock will continue to face challenges.