Over 1 in 4 Hong Kong office occupiers intend to downsize

Meanwhile, only 19% are planning to expand.

In the Hong Kong Occupier Survey 2024, Colliers engaged 385 office occupiers, eliciting insights into their present conditions and outlook for the next 12 months. The respondents represented companies of diverse sizes, industries and operations across Hong Kong.

According to the survey, occupiers are getting more cautious this year, with an increasing number intending to reduce their office space. Respondents indicating they intend to downsize grew to 27% from 21% in 2023, while only 19% are planning to expand (versus 26% in 2023). Over a half (54%) of respondents continue to expect no change. 

Here’s more from Colliers:

Supported by their optimistic business outlook, expansion is the top choice in the Insurance sector (50%). In contrast, the Shipping & Logistics sector shows an increased appetite for downsizing (47% versus 31% in 2023) attributable to the weakening in global demand. 

In terms of country of origin, mainland Chinese (27%) and Hong Kong (21%) firms have a higher appetite for expansion, while European and Asian (ex-Mainland China) firms have higher downsizing rates (31% and 38% respectively). 

Large-size occupiers tend to be more conservative than smaller firms, as 22% of respondents whose office size is below 8,000 sq. ft. opt for expansion, but the ratio drops as low as 13% for firms with an office footprint of 8,000 sq. ft. or above.