Colliers: Zhonghuan Jiaxia rents outperform, and the city is optimistic about the location advantage of West Kowloon to attract Chinese companies to settle in

The Zhitong Finance App learned that leasing in Central Jiaxia is booming this year. Colliers said that the expansion of enterprises is mainly concentrated in the core area, so rents in Central China far outperform the market, and the prospects are still ideal. Furthermore, the bank is optimistic that West Kowloon has a high speed rail station location, attracting Chinese companies to settle in.

Colliers's latest research report “Reshaping Central: Why the Office Market Is Returning to the Core Business District” shows that the pace of recovery in the Central Office Market is clearly ahead of the overall market, mainly due to the recovery of the capital market, the expansion of the financial services industry, and the continued increase in demand for high-quality office buildings. Central regained its growth momentum in 2024, with a total net absorption of about 612,000 square feet between 2024 and 2025, and recorded additional absorption of more than 500,000 square feet in the first eight months of 2026.

Meanwhile, the performance of the Central District market also continued to outperform the overall Grade A office market. The vacancy rate fell from 15.1% in December 2024 to 9.9% in August 2026, significantly lower than the 15.8% vacancy level of Grade A office buildings in Hong Kong; rent in Central District increased by 8.7% in the first eight months of 2026, while the top grade A rents rose 15.4%, far higher than 0.3% of the overall Grade A office market.

A number of indicative commercial buildings, including Guojin Phase 1 and 2, have almost been fully leased out, and The Henderson's occupancy rate has already exceeded 90%.

Lin Ziming, head of the Hong Kong Island Commercial Department of Colliers Hong Kong Commercial Property Services, believes that the IPO government's series of measures to attract investment, and the establishment of private equity funds and family offices to meet tax incentives will boost leasing demand. Even though the Mainland has capital control measures in recent months, involving securities, insurance, etc., Colliers Hong Kong's corporate customer service director Ngan Wai-ping pointed out that there has been no slowdown in expansion in related industries, such as the Gateway Tower in Tsim Sha Tsui, where the insurance industry is concentrated. “Sea-view units are completely out of stock.” In terms of rent, he pointed out that the landlords are still restrained at this stage, and there have been no drastic rent increases, generally 8 to 10%. “The rent is still close to 30% of the peak period, so it's not too aggressive now.”