Colliers: Hong Kong's Grade A office vacancy rate declined to 16.1% in Q2; revised upward its forecast for rental growth in Central and Admiralty to 5%–8%.

Colliers released its Q2 2026 market report, indicating that Hong Kong’s Grade A office market continued its recovery trend, recording a quarterly net absorption of 864,000 square feet, which reduced the overall vacancy rate by 1 percentage point to 16.1%. Central/Admiralty led the recovery this quarter, with the Central Core Business District (CBD) registering net absorption of 182,000 square feet—marking four consecutive quarters of positive absorption and a cumulative total of 880,000 square feet over the past 12 months. Supported by sustained tenant demand, the vacancy rate in the Central CBD declined to 10.2% from 14.5% a year earlier. However, rental performance continued to show significant divergence. Rents in the Central CBD...

AASTOCKSJul 15 12:16

《Major Brokerage》Citi remains positive on the medium-term prospects of local property developers, with top picks being Swire Properties (01972.HK), Sun Hung Kai Properties (00016.HK), CK Asset Holdings (01113.HK), and Link REIT (00823.HK).

Citi published a research report indicating that it expects the first-half 2026 earnings of Hong Kong property stocks to improve, primarily benefiting from: (1) development property profit margins rebounding to a range of 13%–18%, up from 3%–8% in the first half of 2025; (2) strong sales revenue recognition; (3) a return to positive rental reversion in mainland China retail portfolios; and (4) improved financing costs due to debt reduction. The bank anticipates dividend growth for Swire Properties (01972.HK) and Hongkong Land, while Sun Hung Kai Properties (00016.HK) and CK Asset Holdings (01113.HK) are expected to maintain dividends in line with their preset payout ratios and earnings-per-share growth. Citi remains positive on improving cash flows and shareholder returns.

AASTOCKSJul 10 15:08

Central and Western District: The overall rateable value of office buildings has declined for six consecutive years, cumulatively falling by 34%, with premium-grade office space down 10% year-on-year.

Ms. Yang Mingyi, Senior Associate Director of Research at Centaline Property, noted that based on rateable value data from 37 prime and Grade A benchmark office buildings, the overall office rental values continued to decline in 2025, falling by 8% year-on-year with an accelerating pace—the steepest drop since 2020. Office rental values have now declined for six consecutive years since their 2019 peak, cumulatively dropping by 34.2%. The decline in 2025 was primarily driven by prime-grade offices, which saw a 10.1% year-on-year decrease due to rising vacancy rates amid increased supply. Grade A offices, supported by demand from mainland Chinese tenants, experienced a smaller decline than prime offices but still posted a 4% year-on-year drop for the second consecutive year.

AASTOCKSJun 11 17:51

Moody's: An improved operating environment will lay the foundation for developers to achieve stable profitability.

Moody's rating agency stated that Hong Kong's property market is gradually recovering, driven by improved leasing demand for office spaces and a rebound in retail sales alongside the recovery of the tourism sector. These trends have narrowed the decline in office rents and supported retail rental income, although high vacancy rates and still elevated supply levels continue to weigh on the office market. Sales of residential developments showed some improvement in early 2026, but low profit margins will continue to constrain developers' earnings growth. External risks have intensified as the conflict in the Middle East – if prolonged – could drive up inflation and interest rates, potentially hindering the recovery. Unless there is a significant tightening of global financial conditions,

AASTOCKSMay 18 17:05

UBS Group: Hong Kong's office and retail markets under short-term pressure; preference for high-dividend stocks with strong net cash positions such as Cheung Kong Property (01113.HK) and Sino Land (00083.HK).

UBS Group issued a research report stating that the Hang Seng Index has dropped 11% from its peak, and believes that the recovery momentum of Central's office market may be negatively impacted in the short term. Meanwhile, IPO activity may slow down, and financial institutions may freeze expansion plans due to heightened market uncertainty. Some investors are questioning whether Hong Kong can benefit from an inflow of funds and wealth triggered by conflicts in the Middle East. The bank added that it has not observed significant capital inflows into Hong Kong, as evidenced by the rebound in one-month HIBOR and the Hong Kong dollar trading near the weak side of its trading band, indicating recent capital outflows. However, UBS noted that some Chinese professionals and family offices originally positioned in the Middle East may potentially reallocate funds to Hong Kong.

AASTOCKSMar 30 11:57

ANNUAL REPORT 2025

HKEXMar 25 16:48 · Announcements