Hedge funds and quantitative trading firms are driving a recovery in Hong Kong's commercial property market, with major managers including Point72, Jane Street and Qube Research expanding their office footprints as competition for trading opportunities and talent intensifies, according to a report by Bloomberg.

Point72 has expanded its presence in the Henderson tower for a third time, taking its total office space to approximately 100,000 square feet. Meanwhile, Jane Street has secured more than 223,000 square feet at Central Yards, scheduled to open in 2027, and Qube Research & Technologies is leasing six floors at Two International Finance Centre previously occupied by UBS.

Susquehanna International Group has also expanded significantly, securing three floors totalling 52,000 square feet at Cheung Kong Center II, more than doubling its previous footprint. Other firms increasing their presence include Jump Trading, ExodusPoint Capital Management and Hudson Bay Capital Management, while Citadel Securities is expanding its Hong Kong office space by 40% and IMC Trading plans to double its local headcount over the next two years.

The expansion comes amid renewed activity in Hong Kong's equity markets, supported by a recovery in IPO issuance and increased institutional trading. The city's government is also considering tax exemptions on carried interest, a proposal that could strengthen its appeal to hedge fund managers and senior investment professionals.

Growing demand has pushed prime office rents in Hong Kong's Central district approximately 16% higher during the first three quarters of 2026, according to CBRE, with rents in some leading buildings rising as much as 24%. The overall Grade A office vacancy rate fell to 12.4% in September, its lowest level since May 2023, according to JLL.

Competition for space could intensify further as new office supply becomes increasingly constrained. Following the government's suspension of commercial land sales, Savills expects no new office developments to be completed in Central between 2028 and 2031, encouraging financial firms to secure additional capacity ahead of anticipated workforce growth.

The trend highlights Hong Kong's renewed importance as a regional hub for hedge funds and electronic market makers, with firms expanding their investment, trading and technology operations despite continued competition from financial centres including Singapore and Dubai.