Office Sector: 
Hong Kong’s office market showed signs of recovery in July 2025, with a positive net absorption of 189,500 sq ft, largely driven by a flight-to-quality trend as tenants take advantage of softening rents. While the overall Grade A office vacancy rate improved slightly to 11.6%, certain submarkets like Kowloon East and Wanchai/Causeway Bay still have high vacancies. Monthly office rents declined 0.5% overall, with Hong Kong East recording the steepest drop at 2.8%. Key leasing transactions took place in premium buildings such as Two Harbour Square and the Manulife Financial Centre. Meanwhile, a notable asset disposal in Central highlighted continued investor activity despite the cautious rental environment. 

Residential Sector: 
In the residential market, overall transaction volumes dipped 3.1% month-on-month in July, though secondary market activity increased. Mass residential capital values edged up 0.3% as buyers gravitated toward more affordable housing options amid narrowing price gaps between private and subsidized flats. The luxury segment also saw movement, with a unit at TWELVE PEAKS selling for HKD 288 million—a 37% discount from its 2018 price. Despite a slowdown in total consideration value, positive sentiment persists in the primary market, evidenced by strong uptake at new project launches like Deep Water Pavilia. 

 
Source by Jones Lang Laselle, The Land Registry