Colliers Hong Kong director general manager Siu Leung-fai stated that the Grade A office market has recorded positive absorption for four consecutive quarters, with many large leasing transactions of over 10,000 square feet during the quarter, leading to a decrease in the vacancy rate to 19.3%, the first decline since the first quarter of 2022.

In terms of rent, the overall Grade A office rent adjustment accelerated in the third quarter, decreasing by 2.4% quarterly and 4.3% year-to-date. As enterprise demand continues to focus on cost control and upgrading relocation, landlords have also adopted various flexible leasing schemes to attract tenants, causing office rental performance to continue to soften, and the full-year rent is expected to decline by 6% to 8%.

Looking ahead, the recent easing cycle has begun, and macroeconomic policies domestically have significantly stimulated the mainland and local stock markets. In addition, with Hong Kong's IPO market returning to the fourth place globally for the first three quarters, it is believed that this will help the continuous recovery of the financial market, thereby supporting and driving the demand for Grade A offices from banks and financial services tenants.

Regarding shop leasing, with the warming leasing atmosphere, the rental of prime street shops in various districts continued to improve in the third quarter, with rental increases in Causeway Bay, Central, Tsim Sha Tsui, and Mong Kok ranging from 1% to 2.3%. However, under changing consumer patterns for tourists and residents, dining operators in various districts are facing competition and challenges, leading to a slight decrease in dining rentals by 1.5% to 2.5%.

Looking ahead, recent stimulus measures introduced by the central government, coupled with the implementation of interest rate cuts by the Federal Reserve in the USA, are expected to ease the situation of a stronger Hong Kong dollar, potentially further stimulating consumer spending intentions. In addition, the Hong Kong and A-share markets are on the rise, and it is believed that this will also boost consumer power. These positive signals will continue to support the recovery of Hong Kong's retail market, with core street shop rentals across all districts expected to increase by 4% to 9% for the full year.