Developers Add to Hong Kong’s Office Glut: A Deep Dive into the Blame Game and Consequences for 2025 Market

Who's at fault? The surplus of office spaces in Hong Kong is set to intensify as builders plan to introduce more supply in 2025.

According to analysts, an additional 3 million square feet of space is expected to be available next year, which could potentially postpone the rebound in office lease rates.

The sluggish revival of businesses is not sufficient to occupy all the available spaces, and part of the fault lies with the city's property owners, such as Sun Hung Kai Properties, Mandarin Oriental Hotel/Hongkong Land, and SEA Holdings, contributing to the surplus.

Marcos Chan, the executive director and head of research at CBRE Hong Kong, predicts that due to an excess in supply, renters will continue to have the upper hand in 2025. He anticipates that the influx of new supply will result in an increased vacancy rate by the end of 2025. Furthermore, he forecasts a potential decrease in rent by about 5 per cent in the same year.