Hong Kong’s commercial property sector is under renewed stress as property values continue to drop and office and retail vacancies rise. JLL warns values may fall another 5–10% this year, with developers and banks increasingly strained. Office rents have fallen over 40% since 2019, and retail vacancies are at record highs. The crisis may spread to luxury residential properties as owners seek liquidity. Some developers have already defaulted on large debts, raising concerns over broader financial sector stability.