Central rebounds while Kowloon East and West face supply pressure

Asking rents for Grade A space in Central turned upward in the third quarter, recovering by close to ten per cent. The support came from two groups: institutions preparing to list in Hong Kong, and financial occupiers such as family offices taking new or expanded space. These tenants have firm requirements on location and building specification, which has narrowed the room to negotiate on prime core-district floors.

Our latest online listing data (as at 8 September 2026) shows 401 office listings in Central, with a median rent of HK$55 per sq ft per month, still the highest in Hong Kong. Admiralty stands at HK$52, Causeway Bay HK$45, Tsim Sha Tsui HK$35.1 and Wan Chai HK$33.

Kowloon East, Kowloon West and the New Territories: asking rents down as much as 20%

Industrial and commercial floors across Kwun Tong, Kowloon Bay, Tsim Sha Tsui, Lai Chi Kok and Tsuen Wan remain under pressure on both rents and capital values as supply increases. Individual buildings are quoting up to 20% below their historical peak this quarter.

Listing data over the same period shows 188 office listings in Kwun Tong at a median of HK$20 per sq ft, Kowloon Bay also HK$20, with Lai Chi Kok and Tsuen Wan both at HK$18. The gap is wider for industrial space: Kwun Tong at HK$15.5, Tsuen Wan HK$13 and Kwai Chung HK$12. For tenants moving out of the core, the proportion of rent saved is among the widest seen in recent years.

Recent transactions in Kwun Tong

Candice Choi and her team recently concluded several transactions in Kwun Tong. At COS Centre, a Grade A building, a mid-floor Unit A of roughly 3,220 sq ft, full sea-view semi-retail commercial space, was let at over HK$25 per sq ft. Several units at Po Shau Centre were also let at over HK$18 per sq ft. Po Shau Centre is about a two-minute walk from apm, which keeps it in steady demand among semi-retail occupiers.

As Hong Kong Island rents stabilise and recover, Candice Choi and her team have assisted a number of Island-based tenants in relocating or expanding across the harbour, using a move to Kowloon East to reduce rental outlay, an approach that has become increasingly common.

Guidance for the fourth quarter

  • Secure core-district space early. Central asking rents have turned upward and negotiating room is narrowing, so tenants with a firm location requirement should not wait.
  • Room to negotiate remains in Kowloon East and West. New supply has yet to be absorbed and landlords are generally offering longer rent-free periods and rental concessions.
  • Compare total occupancy cost. Beyond rent, factor in management fees, rates, government rent and reinstatement. Even on a fully loaded basis, moving across districts remains highly cost-competitive.
  • Treat semi-retail floors separately. Semi-retail commercial space with genuine footfall prices well above pure office space in the same district and should not be compared like for like.

For the fourth quarter, both staying in the core and relocating to upgrade have merit. Trading a lower rent for better premises and a better working environment has become the prevailing move.