Asia Pacific Office Outlook 2024

HONG KONG

RENT GROWTH

R E N T ( H K D / S F/ M O ) A N D R E N T G R OWT H ( % P E R A N N U M )

FORECAST

60.0

4.0%

2.0%

50.0

 The full-year rental change is expected to record a drop of 7% in 2023, followed by a yearly decline of 8% in 2024.  Rental recovery is to remain slow, due to the moderate new demand anticipated as a result of a cautious business outlook, persistent high interest rates, and geopolitical uncertainties.  On a brighter note, the flight to quality will continue to drive market activities, while leasing demand from mainland occupiers will likely expand further.  Office rents are forecast to bottom out in 2025; rental recovery to take place from 2026 onwards.

0.0%

40.0

-2.0%

30.0

-4.0%

20.0

-6.0%

10.0

-8.0%

0.0

-10.0%

2021

2022

2023F 2024F 2025F 2026F 2027F

Rent (HKD/SQFT/MO)

Rent growth (%)

Source: Cushman & Wakefield