Cheaper Singapore office rents hurting Hong Kong

Singapore rents cheaper by half compared to Hong Kong’s.

Prime central business district office rental rates in Singapore have fallen a further 16% making them 52% lower than Hong Kong's office rental rates so far this year.

Singapore's rates averaged at US$6.94 per square foot against Hong Kong's US$13.43 per square foot. And far away at first is London, with a rental cost of US$260 per square foot per year.

Singapore’s plan to keep office spaces more affordable involves moving commercial activities around the island and decentralizing business activities to other commercial centers.

Cushman and Wakefield noted the combination of below-trend leasing activity and relatively elevated vacancies in super-Grade A space have kept rents on a downtrend over the past year, and among the lowest compared to other financial centers including Hong Kong, Tokyo, Sydney and Shanghai.

The decrease in Singapore office rents works to the city's advantage making Singapore well placed to become Asian hub for global and regional companies, said Cushman and Wakefield. Singapore rents are unlikely to fall further this year, however.