MARKETFUNDAMENTALS

YOY

Chg

Outlook

19.3%

AvailabilityRate*

71,400

NetAbsorption,SF

HK$43.5

NetEffectiveRent(PSF)

AllSFareonNFAbasis

*Note:Availabilityincludesconfirmedleasingstockthatiscurrentlyvacantorbecomingvacantoverthenext12

months

ECONOMICINDICATORS

YoY

Chg

Outlook

3.1%

GDPGrowth(Q12025)

2.0%

CPIGrowth(Apr2025)

3.5%

UnemploymentRate

(Mar2025–May2025)

Source:Cushman&WakefieldResearch,

HongKongCensusandStatisticsDepartment,Moody'sAnalytics

MARKETBEAT

HONGKONG

OFFICEQ22025

NEWLEASEAREAREACHESHIGHESTLEVELSINCECOVID-19

TheHongKongGradeAofficemarketwitnessedacceleratedleasingmomentuminQ22025,underpinnedbyrelocationandexpansionactivitiesfromthebanking&financeandinsurancesectors.ThenewleaseareaforQ2reached1.2millionsf,thehighestquarterlylevelsincetheoutbreakofCOVID-19pandemicinQ12020.

Severalbig-tickettransactionswererecordedinthequarter,includingJaneStreet’scommitmentofmorethan207,000sfatSite3oftheCentralHarbourfrontproject,whichisexpectedtobecompletedin2027.Elsewhere,FWDLifeInsurancesecuredmorethan107,000sfatDevonHouseinHongKongEastasarelocationandexpansionaction.

Thecitywideoverallofficeavailabilityrateremainedlargelystableat19.3%inQ2.However,quarterlypositivenetabsorptionshrankaround50%q-o-qtorecord71,400sf,withpre-leaseactivitiesinunder-constructiondevelopmentsyettobeincludedinthefigure.Withsupplyremainingabundant,thecitywideoverallGradeAofficerentallevelcontinuedtotrenddown,falling1%inQ2tomakea3.4%dropoverallinthe1H2025period.

REVIVALOFIPOACTIVITYTOSUPPORTMARKETSENTIMENT

ThereweresignsofrecoveryinHongKong’sinitialpublicoffering(IPO)marketin1H2025,withtheHongKongStockExchangerankedfirstgloballyforfundsraisedthroughIPOactivities(HK$109billionatJune11,2025)forthefirsttimesince2019.WithfurtherChinesemainlandstocksexpectedinthepipeline,weexpecttheIPOresurgencetohelpsupportofficemarketsentimentanddownstreamleasingdemand,suchasinthebanking&financesectorandprofessionalservicessectors.

SUPERIORAMENITIESANDSERVICESKEYTOCOMPETITIVENESS

Despitetheimprovingmarketsentiment,weexpectthesupplyboomandhighavailabilitytostillweighonrentallevelperformanceinthecomingquarters.Consequently,weforecasttheoverallGradeAofficerentalleveltodeclineby7%–9%through2025.AccordingtoCushman&Wakefield

WhatOccupiersWant2025

report,cost,talentretentionandoperationalexcellencearethetopthreedriversforoccupiersindeterminingleasingstrategies.Whileoccupiersarestillcost-cautious,theydorecognizetheimportanceofahealthyworkplacefortalentretention.Assuch,occupiersareattractedtohighqualityofficepremiseswithsuperioramenities,services,andcommunity-focusedeventswithinandbeyondtheworkspace.

Againstthisbackdrop,aswellasofferingrentalincentives,weadviselandlordstoworkcloselywithoccupierstocreateuniqueandvalue-drivenworkenvironments,asthekeytopresentingasanattractiveoptionamidthecurrenthighlycompetitiveofficelandscape.

NETABSORPTIONS/COMPLETIONS

Million(NFASF)

4

3

2

1

0

-1

-2

-3

20202021202220232024Q22025YTD

NetAbsorption,SFConstructionCompletions,SF

OVERALLAVAILABILITY&NETEFFECTIVERENT

$80

$70

$60

$50

$40

$30

202020212022202320242025

Rent,HKDPSF(LHS)AvailabilityRate(RHS)

21%

18%

15%

12%

9%

?2025Cushman&Wakefield

2?2025Cushman&Wakefield

HONGKONG

OFFICEQ22025

MARKETSTATISTICS

SUBMARKET

INVENTORY

(SF)

AVAILABILITYRATE

CURRENTQTR

OVERALLNET

ABSORPTION(SF)

FUTURESUPPLY(SF)***

HK$/SF/MO

GRADEANETEFFECTIVERENT

Q-oQchange

YTDchange

US$/SF/MO

EUR/SF/MO

GreaterCentral

16,819,940

16.5%

84,225

1,029,400

$76.5

$9.8

$8.5

-0.9%

-4.1%

Wanchai/CausewayBay

9,434,924

13.4%

-14,866

1,160,400

$45.3

$5.8

$5.0

-1.7%

-3.7%

GreaterTsimshatsui

10,073,414

13.0%

23,122

2,582,400

$42.2

$5.4

$4.7

-0.1%

-0.9%

COREAREATOTALS

36,328,279

14.7%

92,480

4,772,200

$58.9

$7.5

$6.5

-0.8%

-3.2%

HongKongEast

9,430,396

18.1%

81,388

-

$32.6

$4.2

$3.6

-2.2%

-5.3%

HongKongSouth

2,761,041

25.8%

5,431

238,400

$22.5

$2.9

$2.5

-0.4%

-7.2%

KowloonEast

17,422,108

25.2%

-77,389

187,500

$23.6

$3.0

$2.6

-1.8%

-4.2%

KowloonWest

5,556,372

29.2%

-30,502

-

$28.6

$3.6

$3.2

-0.3%

-1.3%

NON-COREAREATOTALS

35,169,916

24.0%

-21,073

425,900

$26.8

$3.4

$3.0

-1.6%

-4.3%

OVERALLTOTAL

71,498,195

193%

71,408

5,198,100

$43.5

$5.5

$4.8

10%

34%

ExchangeRate:1USD=0.8669EUR7.8498HKD(asof16Jun,2025)**AllareaspresentedareonNFAbases

***coversplannedandunderconstructionprojects(2025-29)

KEYLEASETRANSACTIONSQ22025

PROPERTYSUBMARKETTENANTSF(NFA)TYPE

Site3,Central,Phase1GreaterCentral

JaneStreetAsia

207,400

Expansion

DevonHouseHongKongEast

FWDLifeInsurance

107,000

Expansion&

Relocation

LeeGardenOne/

LeeGardenTwo

Wanchai/CausewayBay

TheHongKongJockeyClub

40,700

Relocation

OneCausewayBayWanchai/CausewayBay

CathayUnitedBank

38,800

Expansion

AIRSIDEKowloonEast

OKBLTechnology

25,900

Expansion

KEYPROJECTSUNDERCONSTRUCTION

PROPERTYSUBMARKET

OWNER/DEVELOPER

SF(NFA)

COMPLETION

YEAR

InternationalGatewayCentreGreaterTsimshatsui

SunHungKaiProperties

2,112,000

2025

OneCausewayBayWanchai/CausewayBay

MandarinOriental/HongkongLand

410,400

2025

LeeGardenEightWanchai/CausewayBay

Hysan/Chinachem

750,000

2026

ArtistSquareTowersGreaterTsimshatsui

SunHungKaiProperties

470,400

2027

Site3,Central,Phase1GreaterCentralHenderson310,3002027

ROSANNATANG

ExecutiveDirector,HeadofResearch,HongKongTel:+85229567021

rosanna.tang@

THOMASCHAN

AssociateDirector,Research,HongKongTel:+85229567043

thomas.chan@

ACUSHMAN&WAKEFIELDRESEARCHPUBLICATION

Cushman&Wakefield(NYSE:CWK)isaleadingglobalcommercialrealestateservicesfirmforpropertyownersandoccupierswithapproximately52,000employeesinnearly400officesand60countries.InGreaterChina,anetworkof23officesserveslocalmarketsacrosstheregion.In2024,thefirmreportedrevenueof$9.4billionacrossitscoreservicesofValuation,Consulting,Project&DevelopmentServices,CapitalMarkets,Project&OccupierServices,Industrial&Logistics,Retail,andothers.BuiltaroundthebeliefthatBetterneversettles,thefirmreceivesnumerousindustryandbusinessaccoladesforitsaward-winningculture.Foradditionalinformation,visit

.hk

orfollowusonLinkedIn(

/company/cushman-&-wakefield-greater-china

).

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