Hong Kong, Jan 12, 2026, 15:17 HKT — Regular session underway.
- Shares of Hongkong Land climbed in Singapore following Ares’ new office expansion lease in Central
- Ares is expanding by roughly 12,500 sq ft at Gloucester Tower, with the lease kicking off in March
- Traders are eyeing further “flight-to-quality” shifts alongside early signals that rents may have hit their low point
Shares in Hongkong Land Holdings rose Monday following news that alternative investment firm Ares Management plans to double its office space at Gloucester Tower in Hong Kong’s Central district. The Singapore-listed stock gained 2.7%, hitting US$7.94. 1
This move hits home since Hongkong Land’s fortunes hinge on Central. After a lengthy period dominated by tenants, with landlords scrambling to keep large spaces occupied, investors are zeroing in on leasing deals.
This isn’t a massive lease in a market spanning millions of square feet. Yet, it’s the kind of transaction that can signal a shift as companies ramp up hiring, expand their footprints, and lock in longer leases once more.
Hongkong Land announced that Ares will increase its space at Gloucester Tower by about 12,500 square feet. The financial firm, a tenant since 2017, will start the new lease in March 2026. Neil Anderson, head of office at Hongkong Land’s Hong Kong commercial property division, said this growth “underscor[ed] our position as the location of choice” for financial companies. 2
The landlord has doubled down on “flight-to-quality” demand, as tenants leave older, cheaper spaces for newer buildings with better transport and amenities. CBRE noted in its Jan. 6 market outlook that this trend is ongoing, despite high vacancy rates in some city areas due to ample supply. 3
CBRE reported that overall office rents dropped 2.9% in 2025, marking the smallest annual decline since 2019. At the same time, citywide Grade A vacancy climbed to 17.3% following new supply entering the market. Marcos Chan from CBRE said the firm expects “further growth in office leasing momentum” in 2026, though rents are still forecast to fall within about a 3% range this year. 3
Hongkong Land’s shares surged in early January, boosted by a wider interest in Asian property stocks as investors look for signs that premium office rents might be leveling off. The stock has jumped over 14% in just the past week, MarketScreener data shows.
The battle for tenants remains fierce. Central landlords like Hongkong Land, along with rivals such as Swire Properties, are aggressively courting blue-chip tenants, often offering bigger incentives and pouring more into upgrades to secure deals.
The downside risk is still very much alive. Vacancy rates stay elevated across Hong Kong, fresh supply keeps coming online, and the “flight-to-quality” trend might just shuffle tenants around instead of boosting overall demand. Any slowdown in finance hiring would quickly hit leasing activity.
Investors are now keen to see if more major tenants will commit to larger spaces before Ares kicks off its expanded lease in March. A key date on many radars is Hongkong Land’s full-year earnings report, slated for March 5, per MarketScreener’s calendar. 4
