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Hong Kong MarketBeat Reports

Rosanna Tang • 08/04/2025
Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.  

Q1 2025 Highlights

Office: The Grade A office market achieved a sixth consecutive quarter of positive net absorption in Q1.

Retail: Current consumption trends of tourists and locals continued to dictate retail sales performance in the quarter.

Logistics: Leasing activity was tentative in Q1, with the 3PL sector remaining wary.

Capital Markets: Overall investment market momentum was sluggish in Q1 with with end-users and long-term investors mostly driving activity.

Learn more by clicking our most recent Hong Kong MarketBeat reports below.

CURRENT MARKETBEATS

Office Buildings CBD
Hong Kong Office MarketBeat

The banking & finance and insurance sectors remained the linchpin of leasing activity in Q1 towards a sixth consecutive quarter of Grade A office positive net absorption. Despite the momentum, the entry of THE CENDAS project edged the overall availability rate back up to 19.2%. The overall Grade A office rental level dropped back a further 2.5% q-o-q.

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Shopping Retail
Hong Kong Retail MarketBeat

The changed consumption habits of tourists and locals again constrained key retail category sales in Q1, with just the food & alcohol and medicines & cosmetics sectors posting modest y-o-y growth. More brightly, Chinese mainland brands and tourist-oriented operators supported leasing activity at prime locations. High street rents in key retail districts moved in a range of –2.3% to +0.5% q-o-q.

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Warehouse Internal Rack
Hong Kong Logistics MarketBeat

Global uncertainties weighed on leasing demand in Q1, with the 3PL sector remaining cautious and relocation or renewal activities prevalent. The overall prime warehouse vacancy rate rose to 8.2% q-o-q. Prime warehouse rents weakened 5.2% q-o-q, and may decline by 8% throughout 2025.
 

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Office Buildings CBD
Hong Kong Capital Markets MarketBeat

The market endured sluggish momentum in Q1, with end-users and long-term investors mostly driving bottom-fishing activity. Quarterly non-residential deal volume at ≥HK$100 million recorded HK$5.4 billion, slumping 46.7% q-o-q. The hotel / rental housing sector took 55% of investment volume with four en-bloc acquisitions. Office, retail, and industrial asset deals concluded the quarter.
 

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