Written by Nelson Li, Head of IQI Hong Kong 

Hong Kong’s office sector recorded a positive shift, achieving 143,700 sq ft of net absorption, largely driven by increased leasing activity from banks and multinational firms. The overall office vacancy rate dipped to 13.4%, with Central improving to 11.0% and Wanchai/Causeway Bay easing to 12.0%.

Rents slipped marginally by 0.1% month-on-month, though early stabilisation signs appeared in select prime buildings. A notable transaction saw a whole floor in COSCO Tower sold for HKD 220 million, the lowest price recorded there since 2010, reflecting the market’s adjustment phase. 

Overall, it signalled gradual stabilisation as corporate tenants continued consolidating and upgrading workspace. 

In the residential sector, momentum strengthened as primary market transactions rose 10.8% m-o-m to 1,974 units, while secondary sales climbed to 3,669 units, lifting total activity by 6.7%.

Mass residential capital values increased by 0.6%, reversing August’s decline. Lower financing pressure helped support sentiment as the one-month HIBOR reached 3.6% and banks reduced prime rates following the US rate cut.

Demand for new launches remained strong, with The MVP in Mid-levels West selling all 50 units in its first release. The luxury segment also saw activity, highlighted by a HKD 138 million sale at One Stanley.

These trends point toward a market gradually recalibrating under improving liquidity and buyer sentiment.