Hong Kong Office Market Faces Challenges of Oversupply and Weak Demand 

• IPO market saw a significant decline, with a 55% year-on-year decrease in funds raised, marking financial companies reluctant to expand.
• Grade A office vacancy rates rose across most sub-districts, with Kowloon West witnessing a surge from 8.0% to 33.5% due to new office projects completion.
• Overall vacancy rate reached 14.7% in Q4 2023, with a total of 10.3 million sq. ft. of net vacant space.
• Grade A office rents declined by 1.7% in Q4 2023, leading to a total adjustment of -7.5% for the entire year.
• Rising capital expenditure associated with relocations poses challenges for businesses considering cost-saving moves.
• Office rent forecast for 2024 predicts a decline of 5 to 10%.