2026-07-31-莱坊-Hong_Kong_Market_Report_2026_Q2_10页_1mb

Hong Kong Market Report Q2 2026 Summary

Core Content Overview

This report provides an analysis of the performance of Hong Kong's office, residential, and retail property markets in Q2 2026. It outlines key trends, leasing activity, price and rent movements, and future market forecasts.

Office Market Highlights

Key Statistics

• Total Grade-A Office Vacancy Rate: 13.9%
• Average Unit Rent (Net sq ft): HK$52
• Quarterly Take-up (Net sq ft): 660,527

Major Leasing Transactions

Market Trends

• Hong Kong Island Office Market: Continued recovery with average rents rising 5.5% YoY, marking the first growth since 2H 2021. Net absorption reached 861,000 sq ft in 1H 2026.
• Overall Central: Led the rebound with a 10.8% YoY rent increase.
• Co-Working Sector: Recorded over 200,000 sq ft of new lettings in 1H 2026, with demand evenly distributed between Grade A and Grade B buildings. Central and Causeway Bay captured 46% and 40% of total co-working expansion.
• Lease Renewals: Increased slightly in Q2, while relocation activity among large corporates and SMEs moderated, driven by better space utilisation and cost management.
• Future Supply: No major Grade-A completions are anticipated in 2026, with vacancy rates and take-up expected to improve further, reinforcing the market's ongoing bottoming-out phase.

Residential Market Highlights

Key Statistics

• Total Transaction Volume (Q2): 22,156 transactions (+19% QoQ)
• First-Hand Sales: 6,997 transactions (+26% QoQ), with strong performance in new launches and older urban areas.
• Luxury Residential Sales: 120 transactions priced above HK$78 million, representing a 25% QoQ increase.
• Mass Residential Prices: Rose 7.6% YTD and 12.5% YoY in May.
• Mass Residential Rents: Increased by 5.1% YoY and 1.7% YTD in May.

Key Launches

• Kai Tak: 13 new developments launched in Q2, including Cullinan Harbour and KT Marina 2.
• One Victoria Cove (Phase 1): Achieved 100% sell-through of 360 units.
• Average Price per sq ft: Varies by project, with some projects offering discounts up to 25%.

Land Supply

• Q2 2026: Only one site awarded under the Government's Land Sale Programme, with an estimated supply of 1,332 units.
• Q3 2026: Expected to see over 10,000 units from railway property developments and the Hung Shui Kiu/Ha Tsuen pilot area project.

Retail Market Highlights

Key Statistics

• Retail Sales (May 2026): Increased by 7.9% YoY, with cumulative sales from January to May rising 10.6% YoY to HK$171.5 billion.
• Luxury Categories: Strongest performers with 25.8% YoY growth in May.
• Online Retail Sales: Rose by 32.3% YoY in May, accounting for 9.2% of total retail sales. JD.com opened its first JD MALL in Hong Kong in June 2026.
• Mainland Visitor Numbers: Reached 26.71 million in 1H 2026 (+13% YoY), boosting luxury sales.
• Outbound Spending: Estimated 61.8 million trips by Hong Kong residents, contributing to cross-border consumption leakage.

Key Leasing Transactions

Market Outlook

• Prime Street Shop Rents: Expected to increase by 5% to 10% this year.
• Challenges: Cyclical and structural downside risks remain, with rental reversions still negative. Mid-tier and neighbourhood malls are likely to face near-term challenges due to the increasing local penetration of e-commerce.

Key Forecast and Insights

• Office Market: Expected to continue recovery with improved vacancy rates and take-up, driven by co-working and premium Grade-A spaces.
• Residential Market: Entering a rebalancing phase with more selective price growth.
• Retail Market: Recovery is underway, but challenges persist due to cross-border consumption leakage and the impact of e-commerce.

Conclusion

The Hong Kong property market in Q2 2026 shows signs of recovery and resilience, particularly in the office and residential sectors. The retail market is also showing improvement, albeit with ongoing challenges from cross-border consumption and e-commerce growth. The market is expected to continue its gradual recovery in the coming quarters, with increased focus on flexible spaces, prime locations, and strategic land supply.