HONG KONG, 13 April 2026 – Leading diversified professional services and investment management company Colliers has released its Quarterly Market Report | Q1 2026, indicating that Hong Kong’s property market entered 2026 on a steadier footing, with early signs of segment-specific stabilisation emerging across key sectors. While lingering geopolitical tensions and ongoing conflicts in the Middle East continue to cloud sentiment, improving trade conditions and easing borrowing costs have helped temper downside risks and restore a measure of confidence.
L to R: Fiona-Ngan-Kathy-Lee-Thomas-Chak
“Hong Kong’s property market is entering 2026 with greater stability and clearer differentiation across sectors. While external uncertainties remain, improving trade conditions and lower borrowing costs are helping to restore confidence. We are seeing occupiers and investors becoming more selective — gravitating towards prime, well‑located assets with long‑term fundamentals, including Grade A offices and accommodation sector, “ said Kathy Lee, Head of Research and Retail Consultancy at Colliers Hong Kong.
| Grade A office rent | High-street shop rent | Warehouse rent | Investment volume | |
| Q1 2026 (QoQ) | +0.4% | +0% | -2.3% | (+4.9%) (HKD 14.7bn) |
| Q1 2026 (YoY) | -3.2% | +1.6% | -9.1% | +134% |
| 2026 Forecast (YoY) | Flat | +5% | -5% | +10% |
Office
Hong Kong’s Grade A office market entered 2026 on a steadier footing, with leasing momentum extending into a fourth consecutive quarter of positive net take‑up. In Q1 2026 alone, net absorption reached 651,000 sq. ft., led by continued strength in Central / Admiralty. Territorial vacancy remained elevated at 17.1%, reflecting cumulative supply additions, but market sentiment has improved alongside signs of polarisation.
Prime CBD assets outperformed during the quarter, with Central / Admiralty Grade A office rents rising 3.5% QoQ. This reflects ongoing flight‑to‑quality demand, as financial institutions, professional services firms and insurance firms capitalise on the rental correction to upgrade into premium, amenity‑rich offices. By contrast, non‑core submarkets continued to soften, with Kowloon East rents declining 1.2% QoQ, deepening market polarisation.
“A clear two‑tiered office market is expected to deepen through 2026. Prime CBD assets are projected to lead the recovery, supported by concentrated demand and limited availability of high‑quality space. Central / Admiralty rents are forecast to rise by around 5% in 2026, while decentralised secondary stock is expected to remain under pressure as occupiers continue to prioritise quality and location,” said Fiona Ngan, Head of Occupier Services at Colliers Hong Kong.
Retail
Hong Kong’s retail market maintained its improvement in early 2026, supported by resilient retail sales. In the first two months of the year, retail sales grew 11.8% YoY, marking the tenth consecutive month of expansion. Growth was led by strong demand for electronics and consumer durable goods and continued strength in jewellery and watches.
Leasing activity in the first quarter remained seasonally subdued following the extended holiday period, broadly in line with historical trends. Nevertheless, high street rents were largely stable, with overall rental growth of 1.6% YoY, as leasing demand remained concentrated on well located, midsized units. Retail units of 1,500–2,000 sq. ft. are expected to be the strongest tenant demand, while financial institutions and specialty retailers remain active occupiers.
“Looking ahead, the retail outlook for 2026 remains constructive. Supported by mega events and rebound in tourism, high street rents are forecast to grow by up to 5% over the year, with financial institutions and souvenir-oriented retailers remain active and scaling up to capture sales. The upcoming Food Business (Amendment) Regulation 2026, which will allow eligible restaurants to apply for dog‑admission permits, may also provide landlords with an additional lever to enhance the experiential appeal, “said Kathy Lee, Head of Research and Retail Consultancy at Colliers Hong Kong.
Industrial
Hong Kong’s industrial market remained under near‑term pressure in early 2026 amid heightened geopolitical uncertainties and softer external demand indicators. Market activity increased quarter‑on‑quarter but remained largely renewal‑driven. Against continued supply‑side pressures, landlords offered mild rental concessions to retain tenants. Warehouse rents declined 2.3% QoQ and 9.1% YoY in Q1, reflecting ongoing supply-side pressure.
“Industrial rents are forecast to decline by around 5% by end‑2026. Landlords are expected to continue offering additional incentives, including air‑conditioning provision and flexible lease terms, to shore up occupancy. Nonetheless, structural demand drivers remain intact. The award of the Sandy Ridge data centre site to a Chinese Mainland operator underscore growing long-term interest in technology related industrial uses,” commented Fiona Ngan, Head of Occupier Services at Colliers Hong Kong.
Capital Markets
Hong Kong’s investment market gained momentum in Q1 2026, with total transaction volume rising 4.9% QoQ to HKD 14.7 billion. Market sentiment improved on the back of lower HIBOR, large‑scale office acquisitions and robust activity in the accommodation sector.
While office investment eased from a high base in Q4 2025, it still accounted for 59% of total investment value in Q1. Office transactions above HKD 100 million totalled HKD 8.7 billion, driven by a few large-scale deals, including acquisitions by JD Property and City University of Hong Kong, reflecting sustained end‑user demand. The hotel and serviced apartment sector outperformed, with Q1 transaction value reaching around 80% of full‑year 2025 volumes, highlighting strong investor appetite for accommodation assets, while retail investment recorded modest quarter‑on‑quarter growth.
“Office and accommodation assets are expected to remain the core drivers of Hong Kong’s investment market in 2026. Office assets continue to present attractive entry points amid early signs of stabilisation in prime rents. Accommodation and education-related assets are also expected to benefit from policy support and rising non-local student demand. Overall, investment volume is projected to increase by approximately 10% YoY in 2026,” commented Thomas Chak, Head of Capital Markets & Investment Services at Colliers Hong Kong.
