Office rental
  • The amount fell by more than a fifth from the same period a year ago to US$21.3 billion, the lowest figure since the second quarter of 2010
  • Investors believe interest rates will remain elevated until the middle of 2024, hampering investment volumes, JLL said

Hybrid work arrangements, which include some combination of working from homes working at a desk in remote co-working spaces and coming into traditional offices, are a way to create significant cost savings.


Shanghai’s office vacancy rates have continued to rise, as corporate tenants tighten their purse strings and new supply comes online, and rents have continued to decline.

The Hong Kong government will tender only a single parcel of land in the current quarter, as sales have been scaled down because of poor response and prevailing market conditions.

Hong Kong and mainland China might be facing headwinds currently, but investors should not write them off as investment opportunities still abound, analysts say at a family office conference hosted by the Post.

Flex space provider IWG says it is adding locations rapidly in the Greater Bay Area as property owners seek to capitalise on the trend. Major landlords Hongkong Land and Swire Properties also have their fingers in the co-working pie.

Swiss luxury watch brand Audemars Piguet became the latest tenant to sign up for space at The Henderson in Central, lifting the occupancy of Henderson Land’s flagship commercial building to about 50 per cent.

With a monthly average of US$609 per desk, Hong Kong tops the 13 Asia-Pacific cities tracked in a study by The Instant Group, which says demand in Singapore is set to increase by 41 per cent.

More than a fifth of office tenants in Hong Kong may downsize their space requirements with some looking to relocate to mainland China, Singapore and other parts of the world as they cut costs in a weak economic environment, a study released by Colliers revealed on Wednesday.

Shanghai-based White Space, co-founded by an American entrepreneur, hopes to attract Chinese businesses downsizing their real estate footprint amid a slowing economy.

Swire Properties says retail sales at some shopping centres are back at pre-pandemic levels, while Hysan Development reports rising tenant revenue. However, the office market lags as high vacancy rates persist.

The demand for rental homes in several prominent districts of Hong Kong struck an all-time high in July as an influx of mainland China professionals and graduates fuelled demand.

Hong Kong’s efforts to regain its status as an international business hub suffered a setback after its border reopening failed to stoke enough demand from corporate tenants as higher interest rates weighed.

Hong Kong’s office rents and rateable values are expected to fall amid high vacancies, new supply, uncertainties around the global economy and downsizing by firms, analysts say.

Some 13 million sq ft of Hong Kong office space sat empty in April, with 15 per cent of the most valuable space still vacant. In Singapore, occupancy in the CBD is nearing 95 per cent, with rents up 2.5 per cent.

Hongkong Land’s new development in the Shanghai bund area is part of the company’s commercial portfolio strategy in fast-growing mainland Chinese cities, which over the next five years will see the launch of 10 new projects in seven cities.

The firm, in which Shanghai-based investment firm Trustbridge Partners holds a more than 51 per cent share and WeWork Global has a minority stake, is seeing more Chinese firms turning to flexible offices in Hong Kong.

Kevin Ching, the CEO of Sotheby’s in Asia until 2021, is joining his former competitor as Asia chairman as Christie’s prepares to move its Asia headquarters in Hong Kong to a bigger space in Central.

Commercial real estate deals in the rival business hubs grew in the first quarter, defying a regional rout in investment as rising financing costs sidelined potential buyers, according to financial data company MSCI.


A CBRE report cites the scale of Hong Kong’s financial industry and its talent pool as key advantages, while a narrowing office-rent gap tightens the race between the perennial rivals.

Hong Kong’s grade A office vacancy rate fell 0.2 percentage points month on month in March – the first decline since May 2022. Rents also slipped slightly to HK$54.7 (US$6.96) per sq ft from HK$54.8.

The Mandatory Provident Fund Schemes Authority and the eMPF will be moving to a single office in The Millennity in Kwun Tong. The downsizing will save the regulator HK$14 million (US$1.8 million) a year in rent.

Chinese tech company ByteDance, known for its TikTok and Douyin apps, is set to move its multiple offices across Hong Kong into a new space at IFC, with the city’s commercial property market offering opportunities to upgrade or consolidate offices.