香港月刊2025年12月

December 2025 This report analyses the performance of Hong Kong’s office,residential and retail property markets knightfrank.com.hk/research Office HONG KONG ISL AND In addition to increasing demand from PRC companies related to IPO activities,banks and funds from the PRC continue to fuel leasing transactions and expansionsin Central. In December, Three Garden Road recorded several financial firms within-house expansion, totalling about two floors, approximately 32,000 sq ft. Moreover,the level of leasing activities within the wellness sector in Central remains steady. Amedical center leased two floors at the China Building, covering around 20,000 sq ft. KOWLO ON Prior to the holiday season, sizeable tenants in Kowloon have seen an uptick in relocation activity.While size optimisation remains the primary driver for these moves, there is also stronger demand forhigher-quality buildings and prime locations. Compared to a few quarters ago, these large occupiers are now demonstratinggreater readiness in risk management, leading to clearer goals for investing in relocation and securing extended lease termsfrom landlords amid the tenant-favoured market — signalling some support for Kowloon’s long-declining office sector. Office premises in Tsim Sha Tsui offering sea views have performed particularly well overall, driven by additional demandfrom insurance companies and funds. This surge stems from the area’s proximity and connectivity to Chinese mainland,which benefits their related business operations. As we approach the end of 2025, the market is experiencing a slowdown inits downward adjustment trend, with a further slowdown expected in early 2026. Prime Office Market Indicators(Nov 2025) Residential Residential market saw a gradual recovery. As of November, primary sales reached 18,801 units,up 17.3% YTD and exceeded 2024’s level. Secondary sales also reached 38,148 units, up 15.7% YTD.As such, total transaction has reached 56,949 units as of November. We expect total transaction toreach 60,000 – 62,000 units by year end, returning to 2021’s level. Luxury market also sustained momentum with record-setting sales. Notably, the month includeda sale of a house at 39 Deep Water Bay, Unit 2, spanning 4,736 sq ft and sold for HK$342 million, equating to HK$72,213 per sq ft. On the leasing market front, activity slowed due to seasonal factors. Investor activity has picked up, with increasedacquisitions of smaller properties ranging from 220 - 250 sq ft for investment purposes, often leased to students. With the rebounding sales momentum and market sentiment, we expect the luxury price +3% to 5%, mass price 5% to 8% in2026. Similarly with strong tenant demand from professionals and families, luxury rents +3% to 5% and mass rents +3% to 5%. Retail From January to October, total retail sales reached HK$311.7 billion, narrowing the YTD decline to -0.2%.October sales rose 6.9% YoY, led by a 16.4% surge in consumer durables. Luxury sales also edged up,posting a 9.5% YoY gain. Meanwhile, a notable trend has emerged as finance and banking firms increasingly occupy retail spaces in prime districts. Forinstance, HSBC is set to lease over 40,000 sq ft of prime corner space at Capitol Centre in Causeway Bay, marking the first non-fashion, long-term tenant in one of the district’s busiest shopping lanes since 2008—a shift away from traditional fashion retail. We expect a rental split of prime retail and non-prime retail in 2026. Prime assets will remain resilient with positive rentalgrowth, due to tourism recovery and improving retailer demand. On the other hand, non-prime retail will remain underpressure amid structural shifts caused by northbound spending and online spending. We like questions. If you’ve got one about our research, or would like some property advice,we’d love to hear from you. Research & Consultancy CommercialMarkets Capital Markets Valuation&AdvisoryCyrus Fong(S-368139)Executive DirectorHead of Valuation & Advisory,Greater China+852 28467135cyrus.fong@hk.knightfrank.com Antonio Wu(E-053542)Head of Capital Markets,Greater China+852 28464998antonio.wu@hk.knightfrank.com Paul Hart(E-127564)Managing Director, Greater China,Head of Commercial+852 2846 9537paul.hart@hk.knightfrank.com Martin WongSeniorDirectorHead of Research & Consultancy,Greater China+852 2846 7184martin.wong@hk.knightfrank.com Office Strategy & SolutionsWendy Lau(E-141423)Executive DirectorHead of Hong Kong OfficeStrategy & Solutions+852 2846 4988wendy.lau@hk.knightfrank.com ResidentialAgencyWilliam Lau(E-096365)Senior DirectorHead of Residential Agency+852 2846 9550williammw.lau@hk.knightfrank.com RetailServices Steve Ng(E-188091)Executive DirectorHead of Kowloon OfficeStrategy & Solutions+852 2846 0688steve.ng@hk.knightfrank.com Helen Mak(E-087455)Senior DirectorHead of Retail Services+852 2846 9543helen.mak@hk.knightfrank.com Knight Frank Research provides strategic advice, consultancy services and forecasting t