CK Asset's (1113) Cheung Kong Center II in Central saw its occupancy more than double to nearly 60 percent since the beginning of the year, signaling a recovery of Hong Kong's commercial property market, Bloomberg reported on Tuesday, citing people familiar with the matter.
CK Asset expected the office tower to further achieve at least 75 percent occupancy by the year-end, according to the report.
The 41-storey Cheung Kong Center II building experienced only about 10 percent occupancy when it was completed in 2024 - the downturn period of Hong Kong's office market.
However, as economic expansion prompted financial companies to upgrade and expand their offices recently, the city's Grade-A offices saw rising demand.
The surging occupancy of CK's building is partly driven by a "spillover" from nearby offices, with nearly full occupancy of One and Two International Finance Centre, jointly owned by Sun Hung Kai Properties (0016) and Henderson Land Development (0012).
Tenants are reportedly rushing to secure floors in these desirable offices months before, competing for spaces that will only be available in late 2026 or next year.
For the first half of the year, rents of local prime office in Central have climbed by 7.3 percent, marking the largest growth in 15 years, while the vacancy rate also declined from 10.9 percent at the end of 2025 to 8.8 percent, according to JLL.
