Asia Pacific Office Outlook 2024

HONG KONG

DEMAND & VACANCY

N E T A B S O R P T I O N ( M S F ) A N D VAC A N C Y R AT E ( % )

 Towards 2H 2023, there were more new lettings arising from diverse sectors besides banking & finance and professional services, such as

FORECAST

25.0%

1.0

the public sector and consumer products.

0.8

 Particularly, the Kowloon East submarket, which is

20.0%

0.6

popular among cost conscious occupiers,

0.4

remained attractive to non banking finance occupiers, with several sizable deals recorded.  Net absorption is forecast to stay negative at -143K sf in 2023 before recovering to 600D sf in 2024, supported by ongoing economic recovery and preleased space from new supply.  However, availability is expected to edge up and stay at double-digit levels through to at least 2027 due to the elevated supply pipeline in the coming years.

15.0%

0.2

0.0

10.0%

-0.2

-0.4

5.0%

-0.6

0.0%

-0.8

2021

2022

2023F

2024F

2025F

2026F

2027F

Net Absorption Availability Rate*

Source: Cushman & Wakefield