{"id":118865,"date":"2025-10-31T11:01:52","date_gmt":"2025-10-31T03:01:52","guid":{"rendered":"https:\/\/iqiglobal.com\/blog\/?p=118865"},"modified":"2026-01-09T15:54:56","modified_gmt":"2026-01-09T07:54:56","slug":"hong-kongs-property-market-in-august-2025-office-absorption-up-residential-faces-price-pressure","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/hong-kongs-property-market-in-august-2025-office-absorption-up-residential-faces-price-pressure\/","title":{"rendered":"Hong Kong\u2019s Property Market in August 2025: Office Absorption Up, Residential Faces Price Pressure"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p><em>Written by Nelson Li, Head of IQI Hong Kong<\/em><\/p>\n\n\n\n<p>Hong Kong&rsquo;s office market recorded positive momentum in August 2025, with net absorption reaching <strong>313,800 sq ft<\/strong>&mdash;driven by rising demand from IPO activity and wealth management tenants. <\/p>\n\n\n\n<p>Central and Tsim Sha Tsui led the improvement, with vacancy rates tightening to <strong>11.2% and 7.6% respectively. <\/strong><\/p>\n\n\n\n<p>Although overall office vacancies nudged up to <strong>13.5% due to new supply <\/strong>from One Causeway Bay, the rental decline has started to slow. <\/p>\n\n\n\n<p><strong>Average monthly office rents fell <\/strong>by jus<strong>t 0.2%<\/strong>&mdash;<strong>the smallest drop in 2025<\/strong>&mdash;with the sharpest decreases in Hong Kong East (-0.6%) and Kowloon East (-0.3%). <\/p>\n\n\n\n<p>Central saw only a 0.1% decline. A notable deal included a full-floor acquisition at International Enterprise Centre Phase 1 for HKD 71.8 million.&nbsp;<\/p>\n\n\n\n<p>The residential sector saw a slowdown in transactions, with total sales volumes falling 8.2% month-on-month to 5,291 units. <\/p>\n\n\n\n<p>The primary market contributed <strong>1,781 units,<\/strong> while the secondary market accounted for <strong>3,510.<\/strong> Mass residential capital values declined by <strong>0.5% in August<\/strong>, reflecting <strong>continued volatility.<\/strong><\/p>\n\n\n\n<p> Despite the softening, market activity remains healthy: July mortgage applications rose <strong>4.9% month-on-month,<\/strong> with loan approvals surging <strong>11.2%<\/strong> to <strong>HKD 30.6 billion. <\/strong><\/p>\n\n\n\n<p>The Headland Residences <strong>Phase 1<\/strong> saw a <strong>47% absorption rate<\/strong> on launch day, while the luxury market made headlines with the sale of a penthouse at 1 Gough Hill on The Peak for <strong>HKD 1.09 billion<\/strong>&mdash;setting a new record at<strong> HKD 95,014 per sq ft.&nbsp;<\/strong><\/p>\n\n\n\n<div class=\"wp-block-file\"><a href=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2025\/10\/31160654\/Juwai-IQI-Newsletter-Nov.pdf\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">Discover more country insights here!<\/a><a href=\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2025\/10\/31160654\/Juwai-IQI-Newsletter-Nov.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-8a66255a-c0fa-4f3e-9ea2-8031309a3893\">Download<\/a><\/div>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Written by Nelson Li, Head of IQI Hong Kong Hong Kong&rsquo;s office market recorded positive momentum in August 2025, with net absorption reaching 313,800 sq ft&mdash;driven by rising demand from IPO activity and wealth management tenants. Central and Tsim Sha Tsui led the improvement, with vacancy rates tightening to 11.2% and 7.6% respectively. Although overall&hellip;<\/p>\n","protected":false},"author":41,"featured_media":118797,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"footnotes":""},"categories":[11302,9207],"tags":[10540,10268],"class_list":["post-118865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hong-kong","category-newsletter","tag-iqi-hong-kong-en","tag-newsletter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.1 (Yoast SEO v26.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hong Kong\u2019s Property Market in August 2025: Office Absorption Up, Residential Faces Price Pressure<\/title>\n<meta name=\"description\" content=\"Hong Kong\u2019s office market recorded positive momentum in August 2025, driven by rising 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