CBRE Group Inc: Hong Kong Shop Vacancy Rate Rises to 8% in Q3

Stock News
Oct 20, 2025

According to the report on the "Hong Kong Commercial Real Estate Market Perspective" by CBRE Group Inc, the leasing activity for Grade A offices in Hong Kong improved in Q3 this year, with overall leasing volume increasing by 25% quarter-on-quarter to 1.3 million square feet. Year-to-date leasing volume reached 3.2 million square feet, reflecting a 12% decline year-on-year. The vacancy rate for shops rose by 0.9 percentage points to 8%, with only a slight decrease in the Central district. The report highlighted that net absorption for Grade A office space across Hong Kong reached 691,800 square feet, the highest since Q3 2018. Additionally, the overall vacancy rate decreased by 0.3 percentage points to 17.1%, marking the largest quarterly drop since Q3 2018. In terms of rental rates, there was a quarterly decline of 0.7%, with a year-to-date decline of 34%. In the retail market, Q3 saw rental volume increase due to accelerated growth in retail sales value. The number of visitors in July and August surged by 13.9% year-on-year, with total retail sales for these two months increasing by 2.8% year-on-year, the fastest growth since Q4 2023. Most leasing activity for shops took place on non-prime streets during the quarter. The vacancy rate rose by 0.9 percentage points to 8%, with only a slight decline in the Central district. Rental rates saw a slight quarterly increase of 0.5%, below the 1% increase recorded in Q2 2025, bringing year-to-date growth to 2.4%.

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