2026-01-28-莱坊-Hong_Kong_Market_Report_2025_Q4_10页_1mb

Hong Kong Market Report Q4 2025 Summary

Core Content

This report provides an analysis of Hong Kong's property markets in Q4 2025, focusing on the office, residential, and retail sectors. It highlights the performance, trends, and future outlook for each market, with a particular emphasis on the impact of supply, demand, and economic conditions.

Office Market Highlights

• Performance: The office market in Hong Kong showed a clear bifurcation, with premium Grade-A spaces in Central experiencing strong demand and rental growth, while traditional buildings faced challenges.
• Rental Trends:
  • Premium Central rents rose by 3% YoY.
  • Traditional Central rents declined by 7.1% YoY.
  • Overall Central rents fell by 2.7% YoY.
• Vacancy Rates:
  • Total Grade-A office vacancy rate was 15.6%.
  • Average unit rent (net sq ft) was HK$49.5.
  • Quarterly take-up was +880,125 net sq ft.
• Key Transactions:
  • QRT committed to 140,000 sq ft at Two International Financial Centre.
  • Futu Securities leased 38,169 sq ft at Two Pacific Place.
  • Agba Group took 18,677 sq ft at Foyer in North Point.
• Future Supply:
  • International Gateway Centre (IGC), completed in December 2025, added 1,900,000 sq ft to the market.
  • Other developments include Central Crossing, Conic Investment Building, Crystal Tower, Lee Garden Eight, 92-103 Connaught Road West, and The Cullinan Zone 1 Sun Sky.

Residential Market Highlights

• Transaction Growth:
  • Total transaction volume reached 62,832, up 18.3% YoY.
  • Primary market transactions increased by 21.5% YoY, while the secondary market saw 16.9% YoY growth.
• Price Trends:
  • Private residential price index rose by 2.8% YTD in November 2025.
  • Luxury residential prices and rents are expected to grow by 3% to 5% in 2026.
• New Supply:
  • Four projects were launched in Q4 2025, including Double Coast III, Soyo Square, Austin Bohemian, One Park Place, Spring Garden, and Grand Mayfair III.
  • These projects offered competitive pricing and incentives, with some achieving 100% sell-through.
• Land Sales:
  • Several land parcels were sold in 2025 and early 2026, including STTL 651, TCTL 55, TMTL 569, TWTL 441, and NKIL 6674.
  • These sites are expected to yield a total of 2,960 residential units.
• 2026 Forecast:
  • Mass residential prices are projected to rise by 5% to 8%.
  • Mass residential rents are expected to increase by 3% to 5%.
  • Luxury residential prices and rents are forecasted to grow by 3% to 5%.

Retail Market Highlights

• Sales Recovery:
  • Total retail sales from January to November 2025 reached HK$345 billion, a 0.4% YoY increase.
  • Sales growth resumed from May 2025, ending a 14-month contraction.
• E-commerce Impact:
  • E-commerce penetration rose sharply, with online sales increasing from 6.3% (HK$20 billion) in 2020 to 9.5% (HK$32.6 billion) in 2025.
• Tourism Influence:
  • Visitor numbers increased by 12.2% YoY, but per-capita spending remained subdued.
  • Mainland Chinese visitors accounted for 10.2 million, up 12.1% YoY, but per-capita spending dropped by 21.9% compared to Q1 2019.
• Retail Demand:
  • Financial institutions and banks have taken up significant retail spaces, including Longbridge Securities, HSBC, and OCBC Bank.
  • Landlords are increasingly focusing on F&B tenants to maintain occupancy, as they are more resilient to e-commerce competition.
• Rental Indices:
  • Key rental indices include RVD Private Retail Rental Index, KF Non-Core Shopping Centre Rental Index, KF Core Shopping Centre Rental Index, and KF Prime Street Shop Rental Index.
• Key Lettings:
  • 58 Russell Street & 73-75 Percival Street in Causeway Bay leased for HK$1,200,000.
  • 12 Pedder Street (Pedder Building) in Central was leased for HK$1,000,000.
  • 35 Queen's Road Central was leased for HK$1,500,000.

Key Takeaways

• The office market is showing resilience in premium areas, but overall growth is hindered by existing vacancies and future supply.
• The residential market is on a recovery path, with positive transaction growth and rising prices.
• The retail market is experiencing early stabilisation, driven by F&B demand and diversified tenant mix.

Conclusion

The Hong Kong property market in Q4 2025 reflects a mix of recovery and challenges. While premium office spaces and residential markets show positive trends, traditional office and retail sectors continue to face pressure from supply overhang and e-commerce competition. The outlook for 2026 is cautiously optimistic, with core districts expected to benefit from upgrade-driven relocations and diversified tenant strategies.