Hong Kong’s office market has yet to emerge from the woods despite China’s much-vaunted re-opening and this does not bode well for landlords and REITs with these assets in the territory.

Particularly affected are landlords and REITs that have investment portfolios that are steeped with Grade A office assets, based on the latest data released by Cushman & Wakefield.

Presently, REITs with a substantial component of Grade A office assets in their investment portfolios include Link REIT and Yuexiu REIT.

According to data provided by Cushman & Wakefield, the Hong Kong office market’s overall net absorption rate for 1Q 2023 was at negative 248,000 square feet.