[30 March 2026] Hong Kong Monthly Report – March 2026
Grade-A Office Market
Hong Kong
Rental growth in premium Grade-A offices in Central accelerated in February, up 6.0% YoY or 2.8% YTD. Enquiry levels for high-quality office spaces remain resilient, indicating sustained occupier demand for prime buildings.
Amid ongoing external headwinds, capital and family offices from the Middle East are expected to further diversify their portfolios into other major regional hubs in APAC, such as Hong Kong. This is likely to support demand for smaller floorplates of Grade-A offices.
Kowloon
Market activity remained subdued during the Chinese New Year holidays, with limited movements recorded. Yau Tsim Mong continues to be the most sought-after area for office upgrades, while Kowloon East sustains momentum in relocations and renewals.
A European insurance firm has secured 100,000 sq ft at IGC, Kowloon Station. Both existing and prospective tenants of IGC are primarily from banking & finance, insurance and professional services, these sectors are actively seeking to leverage emerging opportunities from the PRC while benefiting from relatively higher rental affordability.
Residential
In February, primary sales reached 4,109 units, up 146.3% YTD and exceeded 2024’s level. Secondary sales also reached 8,229 units, up 59.5% YTD. Total transaction has reached 12,338 units.
In the luxury sales market, the latest Budget announcement of a rise in stamp duty (from 4.25% to 6.5%) on properties priced above HK$100 million may have a minimal impact on transaction volumes, as homebuyers are less sensitive to stamp duty. The luxury market remained active in February.
Leasing activity driven by proximity to universities remains active. This has continued to attract investors seeking rental income opportunities, boosted by strong demand from non-local students amid a severe shortage of on-campus and private student accommodation.
Retail
Hong Kong’s retail sales value rose 5.5% YoY in January, marking nine consecutive months of growth. Sales of jewellery, watches, clocks and valuable gifts jumped 31.1%, it is expected to pick up further in February with increasing numbers of tourists during the nine-day Chinese New Year holidays. A total of 1.77 million tourists visited Hong Kong, up 14% YoY, of which 1.5 million were from the Chinese mainland.
Tourism‑driven demand for souvenirs continues to support local brands. Overall, domestic consumption remains cautious, with a wave of closures across F&B and apparel operators indicating limited appetite for new openings in the short term. Ongoing external headwinds in the Middle East may affect visitors’ travel plans to Hong Kong. However, this could also lead local residents to travel less or opt for short-haul trips instead, which may help support the performance of the local retail market.
