Office rents down by 34% since 2019: report

The gap attracts companies seeking to establish regional headquarters in Hong Kong.

Hong Kong office rents have decreased by 34% since 2019, which Knight Frank noted makes it attractive for firms looking to set up their regional headquarters in the city. 

Premium office rents in Hong Kong also narrowed sharply to 24% from 105% in the fourth quarter of 2019.

This reduced gap creates attractive cost savings for companies looking to establish regional headquarters in Hong Kong, Knight Frank said.

“Capital flows and corporate strategies are being reshaped as Trump's policies shift global dynamics and accelerate US-China decoupling," Christine Li, head of research, Asia-Pacific, Knight Frank said. 

"Chinese mainland companies are now favouring Hong Kong over the US as a listing destination, while global investors are increasing their presence in the region to tap investment opportunities and the expansion in private capital. Several financial firms have sealed high-profile leases in Hong Kong in recent months."