The latest “2026H1 Review and Outlook Report” has published and below are the brief review for the IC&I property market in 2026H1. To further understand the details of the market, please click here to read the latest report.

Property Transaction in 2026H1

•In 2026H1, the overall industrial, office, and retail property market recorded a total of 2,724 transactions, representing a Y-o-Y increase of approximately 16.6%, reaching a new high since 2021. The transaction volume was HKD 34.9 billion, a Y-o-Y increase of about 17.6%.

•In 2026H1, the industrial property market recorded a total of 1,436 transactions, representing a Y-o-Y increase of approximately 17.3%, the highest level since 2022. However, the total transaction value was only HKD 7.6 billion, a Y-o-Y decrease of approximately 7.7%.

•In 2026H1, the office market recorded a total of 659 transactions, a Y-o-Y increase of approximately 16.4%, reaching a new high since 2021. The total transaction value amounted to HKD 19.8 billion, representing a Y-o-Y increase of approximately 37.7%.

•In 2026H1, a total of 629 shop transactions were recorded, a Y-o-Y increase of approximately 15.0% and a new high since 2021. However, weighed down by the significant decline in shop prices, increase in transaction value is lower than the transaction number; the total transaction value for 2026H1 was HKD 7.5 billion, a Y-o-Y increase of approximately 5.9%.

•The investment market returned active this year. In the first half of this year, there were 58 transactions that exceeded HKD 100M involving industrial buildings, offices, shops, hotels, serviced apartments, residential buildings, sites, and carparks, with a total transaction value of HKD 27.6 billion, a Y-o-Y increase of approximately 107.1% and 82.2% respectively. Among these, transactions involving entire buildings recorded 31 cases, an increase of over 1.5 times Y-o-Y. By sector, offices continued to be the category with the highest number of transactions that exceeded HKD 100M, totaling 24 cases.

Rent and Price Changes in 2026H1

•In the first half of this year, Hong Kong’s import and export values reached HKD 3.71 trillion and HKD 3.42 trillion, respectively, representing Y-o-Y increases of approximately 40.6% and 39.1%. Both figures set new historical records. However, rents and prices of industrial properties remained weak. In the first half of the year, industrial rents and prices fell by approximately 2.0% and 4.0%, respectively, indicating that the industrial market is still in a consolidation phase.

•Trend of office prices and rents varied. In the first half of the year, Grade A office prices fell by approximately 3.1%, though the decline was more moderate than during the same period last year, while Grade B office rents dipped slightly by about 2.3%. As vacancy rates for Grade A offices receded, Grade A office rents recorded a 1.5% increase in 2026H1. Simultaneously, as the gap down in office prices has diminished, Grade B office prices rose by 1.0%. These trends reflect a rebalancing of the supply demand relationship, driven by corporate expansions, the government’s suspension of commercial land sales, and developers gradually reducing the number of new office projects.

To further understand the changes of price and rent of specific district, please click here to read the latest report.