COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Hong Kong tops world's priciest cities for office space

Grade A office spaces are priced at $2,342 psf annually.

When it comes to the world's priciest cities for office spaces, Hong Kong tops the list ahead of London and New York, JLL's recent Global Premium Office Rent Tracker.

Hong Kong takes a significant lead in terms of occupancy cost compared to the two other cities. The price of premium office space in Hong Kong's central district is more than 50% higher than rates in London and New York. Office spaces cost $2,342 (US$302) psf per year, in contrast with US$197 psf in London's West End and US$194 psf in Midtown New York.

This is Hong Kong's new high compared to US$262 a year ago. According to JLL head of research Megan Walters, this was due to strong demand and shortage of stock as companies from Mainland China look to have a base in Hong Kong.

“Hong Kong’s Central district is being reshaped as western banks and financial institutions downsize or move out due to global challenges such as slower economic growth and increased compliance and regulations,” she said.

She furthered, "“Mainland Chinese wealth and asset companies are moving in as they seek to boost their presence in Hong Kong. This demand is expected to continue with the launch of the Shenzhen-Hong Kong Stock Connect program in December. The market is also set to get more fragmented since the initial requirement from these companies is usually less than 5,000 square feet. This could prove challenging for both tenants and landlords for the long term.”

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