Hong Kong Grade-A office rents rise for fourth consecutive quarter, vacancy falls to 15.5%: CBRE
CBRE reported that Hong Kong Grade-A office rents rose 3.2 per cent quarter-on-quarter in Q3 2026, marking the fourth consecutive quarterly increase. Vacancy rate fell to 15.5 per cent, while net absorption reached 858,600 sq ft in Q3, the highest first-nine-month total since 2018.
Property consultancy CBRE reported that Hong Kong's Grade-A office rents rose 3.2 per cent quarter-on-quarter in the third quarter of 2026, extending the growth streak to four consecutive quarters. Rents have risen 6.7 per cent year-to-date, according to the firm's latest market report.
The overall vacancy rate for Grade-A offices fell to 15.5 per cent at the end of September, down 0.8 percentage points from the previous quarter. Net absorption in Q3 stood at 858,600 square feet, bringing the year-to-date total to 1.8 million square feet — the highest first-nine-month figure since 2018.
In the retail sector, prime street shop rents rose 0.9 per cent quarter-on-quarter in Q3, while major shopping mall rents increased 0.7 per cent. The vacancy rate for prime street shops fell to 6 per cent at end-September, down 0.5 percentage points quarter-on-quarter and the second-lowest level in nearly seven years. CBRE noted that prime street shop rents have now risen for 17 consecutive quarters.
Industrial and logistics property rents declined 0.2 per cent to 0.7 per cent quarter-on-quarter in Q3. Warehouse vacancy fell to 11.3 per cent, down 0.3 percentage points from the previous quarter.
Investment transaction volume in the commercial real estate market reached 18 billion Hong Kong dollars in Q3, surging 79 per cent quarter-on-quarter. Investor interest in student housing conversion projects remained strong, with 5.3 billion Hong Kong dollars deployed into related assets during the quarter.
CBRE also reported that luxury home prices have risen 5.3 per cent since the start of 2026, and are 11.3 per cent above the March 2025 trough. In the first three quarters of this year, 197 residential transactions worth over 100 million Hong Kong dollars each were recorded, up about 110 per cent year-on-year, with total transaction value rising nearly 55 per cent to 28.2 billion Hong Kong dollars.