Once the world’s most expensive office market, Hong Kong has seen a dramatic shift since 2019, with office rents in the Central Business District (CBD) and surrounding areas falling by nearly 40%. According to CBRE and JLL, the combination of geo-political shifts, pandemic disruptions, and hybrid work trends have reshaped the office landscape, offering unprecedented opportunities for tenants and investors in 2025.
But what’s really behind this sharp decline? And is now the best time for businesses to seize high-quality office spaces in Hong Kong? Let’s explore.
Hong Kong Office Market: From Boom to Reset
In 2019, Hong Kong’s CBD commanded record-breaking rents exceeding HK$120 per sq ft per month, driven by limited supply, financial sector demand, and its status as Asia’s premier business hub. Fast forward to 2025, and prime CBD office rents have plummeted to around HK$72 per sq ft per month, marking a 40% correction over six years, according to Savills Hong Kong Q1 2025 report.
Key Factors Driving the Decline:
- Prolonged Political Unrest (2019-2020)
- Pandemic-driven Work-from-Home and Hybrid Trends
- Corporate Consolidations and Downsizing
- Mainland Chinese Firms Taking Up Space — But at Lower Rents
- Increased New Supply in Decentralized Areas
This correction has brought Hong Kong’s office costs closer to those in Tokyo and Seoul, while still remaining among the world’s top 5 costliest office markets, based on CBRE’s 2025 Global Office Rent Rankings.
Current Market Snapshot (Q2 2025)
| District | 2025 Avg. Rent (HK$/sq ft/month) | 2019 Avg. Rent (HK$/sq ft/month) | % Change |
| Central (CBD) | 72 | 120 | -40% |
| Wan Chai / Causeway Bay | 58 | 92 | -37% |
| Tsim Sha Tsui | 48 | 80 | -40% |
| Kowloon East (Kwun Tong, Kowloon Bay) | 30 | 52 | -42% |
Sources: CBRE, JLL, Savills, Q1 2025 data.
Who’s Benefiting from the Lower Rents?
1. Startups & SMEs
Smaller companies that once found the CBD unaffordable are now leasing Grade A spaces at a fraction of pre-pandemic prices, boosting their corporate image and employee satisfaction.
2. Mainland Chinese Firms
While demand from Western firms has softened, Mainland companies have filled part of the gap, often negotiating favorable terms and taking up large footprints in Central and Admiralty.
3. Flexible Space Operators
Coworking providers like WeWork, The Executive Centre, and Compass Offices are expanding their CBD footprints to cater to startups and project teams seeking flexible, high-quality spaces at discounted rates.
Is Now the Time to Secure Office Space?
With vacancy rates at historic highs (over 15% in Central and Kowloon East) and landlords offering aggressive incentives, including rent-free periods and fit-out subsidies, 2025 presents a unique window of opportunity for businesses to upgrade, consolidate, or relocate.
Moreover, landlords are prioritizing occupancy over rental growth, making this an ideal tenant’s market, particularly for companies seeking green-certified, wellness-oriented workspaces at competitive costs.
Expert Tip: Don’t Just Focus on the CBD
While the CBD offers prestige, decentralized hubs like Kowloon East, Quarry Bay, and Wong Chuk Hang are offering ultra-competitive deals, with rents up to 60% cheaper than Central. These areas have also benefited from infrastructure improvements, lifestyle amenities, and newer office stock, making them attractive alternatives for cost-conscious businesses.
Future Outlook: Stability or More Downsides?
According to JLL and Knight Frank, Hong Kong’s office market is expected to stabilize in late 2025, with flat to modest rental growth (0–2%) forecasted in 2026, driven by:
- Absorption of new stock in decentralized areas.
- Gradual return of multinational demand.
- Stabilization in geopolitical conditions.
However, the days of sky-high rents are unlikely to return soon, as hybrid work becomes entrenched and occupiers remain cost-sensitive.
Find Your Perfect Hong Kong Office Space with MatchOffice
Whether you’re seeking premium CBD office space at a rare discount, exploring Kowloon East’s cost-saving hubs, or considering flexible coworking solutions, MatchOffice helps you navigate Hong Kong’s evolving office market with ease.
Browse Hong Kong’s best office listings, compare rents, and secure the ideal space for your business with MatchOffice — your trusted partner in commercial real estate.