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Occupancy at the 41-story Cheung Kong Center II (CKC II) has risen to about 60% from the start of the year, more than doubling over the period, people familiar with the matter told Bloomberg.

The increase has been supported by an improving economy that is encouraging financial firms to upgrade and expand their office space.

CK Asset, controlled by billionaire Li Ka-shing, expects the tower to be at least 75% occupied by the end of the year, one of the people said, requesting anonymity because the information is private.

The building opened during one of Hong Kong’s most severe office market downturns and had leased only about 10% of its space when completed two years ago, struggling to compete with nearby properties.

Hong Kong’s office leasing market continued to recover in the first half of 2026, with Hong Kong Island leading the rebound as demand for prime office space strengthened, according to a report by Knight Frank as cited by Real Estate Asia.

Office rents across Hong Kong Island increased 4.8% year-to-date in the first five months of 2026, Knight Frank said. Traditional Central recorded the strongest growth, with rents rising 10.6%, ahead of Premium Central, where rents gained 9.0%.

Leasing activity at CKC II, meanwhile, has been helped by a spillover of demand from nearby trophy office towers, including One and Two International Finance Centre, jointly owned by Sun Hung Kai Properties and Henderson Land Development, where vacancy rates are close to zero.

Landlords of those buildings and other highly sought-after towers have also received interest from multiple prospective tenants competing months in advance for office floors that will only become available later this year or in 2027, creating waiting lists, according to property agents.

“The landlords for those buildings in Central are able to increase the prices substantially and really cherry-pick which occupiers would add the most amount of value for their asset in the longer term,” said Alex Barnes, JLL’s co-chief executive officer for Greater China.

The rebound has been supported by Hong Kong’s strongest economic growth since 2021, with the economy expanding 5.9% in the first quarter. Increased equity capital market activity has also boosted demand from firms seeking long-term office space.

“As the overall economy improves this year, many companies are more open to a bigger budget for office upgrade or expansion,” said Ada Fung, chief operating officer of CBRE Hong Kong’s advisory services, as quoted by Bloomberg.

Beyond Central, JLL expects Hong Kong’s overall prime office rents to rise by as much as 5% this year, potentially ending a decline that began after the market peaked in 2019.

Li Ka-shing is revered as one of the most influential businessmen in Asia. He built his fortune through real estate before expanding into ports, telecommunications, infrastructure, retail, and utilities across the world.
Li retired as chairman of CK Hutchison Holdings and CK Asset Holdings in 2018 but remains senior advisor.