Hong Kong's Grade A office rents are expected to rise 4% to 6% in 2026, up from a previous forecast of 1% to 3%, supported by resilient leasing demand from the banking and finance sector, according to a Cushman & Wakefield report released Tuesday.

The property consultant said demand is being driven by ongoing wealth management activity, an active IPO pipeline and long-term expansion by financial institutions.

Citywide Grade A office rents rose 1.9% quarter over quarter in the second quarter and 4.3% in the first half, led by Greater Central, where rents climbed 9.7% over the six-month period.

Cushman & Wakefield expects Hong Kong home prices to rise close to 10% this year, while residential market activity is seen easing in the second half following a strong first-half recovery, The Standard reported separately.

Home sales climbed 19% quarter over quarter and 32% year over year to more than 22,150 units in the second quarter, the strongest quarterly performance since the second quarter of 2021, according to the report.