Chung Yuan (commercial properties): Leasing transactions in Hong Kong shopping malls in January increased by nearly 50% year-on-year, and are expected to continue to remain at a high level in February.

According to the statistics from Midland (Commercial), the overall performance of office leasing in Hong Kong in January was ideal, with approximately 508 transactions recorded, involving a total floor area of about 1.4837 million square feet, representing a nearly 50% increase compared to the same period last year. As the market economy continues to improve in 2026, some companies are gradually resuming and expanding their businesses, and new lease agreements and relocation cases after the Lunar New Year are expected to increase. It is anticipated that the leasing activity in commercial buildings in February will continue to be strong. Chen Yanlou, Director of the Office Leasing Department at Midland (Commercial), stated that about 508 leasing transactions were recorded in the commercial building market in January, representing a slight increase of approximately 9.96% compared to the previous month, and an increase of about 47.25 percentage points compared to the same period last year. The total leased area was around 1.4837 million square feet, with month-on-month and year-on-year increases of approximately 5.14% and 46.23%, respectively. As for the vacancy rate of Grade A offices, Chen Yanlou pointed out that the overall vacancy rate on Hong Kong Island showed improvement, with the overall vacancy rate in January at 11.90%, representing a significant improvement of 0.3 and 2.16 percentage points compared to the previous month and the same period last year, respectively. In particular, Central and Admiralty recorded vacancy rates of 6.50% and 11.62% respectively in January, with slight decreases of 0.67% and 0.36% compared to the previous month, and a year-on-year decrease of approximately 2.59% and 3.04%. Additionally, the overall vacancy rate in Kowloon in January was 16.00%, an increase of approximately 0.67 percentage points from the previous month, but a significant improvement of 1.16 percentage points compared to the same period last year. The performance of various districts in Kowloon varied. Tsim Sha Tsui had a vacancy rate of 6.47%, with decreases of 0.28 and 2.35 percentage points compared to the previous month and the same period last year, while Kwun Tong recorded a vacancy rate of 15.63%, with increases of 0.87 and 1.02 percentage points compared to the previous month and the same period last year. According to the latest data released by the Hong Kong government, the number of companies and startups in Hong Kong has reached a record high, with 5,221 startups, representing a year-on-year growth of about 11%. This indicates that Hong Kong still holds its position as a financial center, attracting more companies to establish a presence or expand their business in Hong Kong, further boosting the overall demand for office leasing. Chen Yanlou stated that with the recovery of the Hong Kong economy and the rebound in the stock market, many domestic and foreign companies are setting up bases or expanding their business in Hong Kong, gradually increasing the demand for office leasing. Industries with high growth, especially the financial services industry and startup technology companies, are accelerating the expansion of their offices, further enhancing the market atmosphere. It is expected that after the Lunar New Year, there will be a traditional peak in leasing activity, as many companies face business adjustments, relocations, and new expansion needs, leading to a high volume of leasing transactions in February and a gradual reduction in the vacancy rate of Grade A offices.