Hong Kong Office Expansion Lags Behind Hiring as Tenants Optimise Space: Colliers Survey
SCMP · 1 SOURCESabout 1 hour ago2 MIN
Summary
More than a third of Hong Kong office tenants are planning to increase headcounts over the next 12 months, but only a fifth are likely to expand their real estate footprint, according to Colliers' fourth annual Hong Kong occupier survey. The property consultancy found a growing disconnect between hiring intentions and office expansion plans, as many occupiers continue to absorb growth within existing premises through more efficient space utilisation and evolving workplace strategies. Business confidence has strengthened considerably, with 41 per cent of respondents expecting improved conditions over the next year, supported by an improving economic backdrop.
Key Points
- Colliers surveyed approximately 200 office tenants across various industries and company sizes between June and August 2026 .
- 41 per cent of respondents expect Hong Kong business conditions to improve over the next 12 months, compared with just 16 per cent anticipating deterioration .
- Professional and business services tenants are most likely to expand space at 31 per cent, followed by banking and financial services at 26 per cent and real estate and construction at 25 per cent .
- Technology, media and telecommunications companies are the most likely to reduce office size, with 28 per cent planning downsizing, primarily for cost reduction .
- Chris Hui, head of landlord representation for office services at Colliers, noted occupiers are becoming more selective rather than more expansive, remaining in current buildings while evaluating workplace quality and lease economics .
Why It Matters
The divergence between hiring optimism and space conservatism suggests Hong Kong's office market may face subdued demand for new leases even as the economy improves. Landlords and property developers will need to adapt by focusing on building quality and competitive lease terms to retain and attract tenants in an increasingly tenant-favourable market .
The divergence between hiring optimism and space conservatism suggests Hong Kong's office market may face subdued demand for new leases even as the economy improves. Landlords and property developers will need to adapt by focusing on building quality and competitive lease terms to retain and attract tenants in an increasingly tenant-favourable market .