Beijing and Hong Kong Office Space More Expensive Than New York!!!

Beijing and Hong Kong Office Space More Expensive Than New York!!!

David Nealis President of Blue Bridge

Hong Kong tops the list as the most expensive city for office space in the world. 

Hong Kong was the world’s most expensive city for office space last year followed by London, Geneva, Tokyo and Zurich according to property consultancy DTZ. Strong demand and rent increases pushed the total occupancy cost of a workstation in HK to US$ 25,160 per year, a 13 percent increase year of year.

DTZ went on to forecast HK to remain the most expensive office space in the region to at least until 2016.

DTZ said the increase in office space costs were also seen in major cities across China, which continued to rise over the past year, driven by demand from domestic firms interested in having their brands associated with top office buildings. The highest increase in office space costs was seen in the China capital, Beijing’s Central Business District rose 38 percent year on year, fuelled by rent rate increases by landlords and limited office space supply. 

Obviously the high rents in Hong Kong signify the value of being in the market here, this has been great for Hong Kong’s real estate developers, but the side affect is it is affecting small locally grown firms as well as small to midsize firms wanting to locate here. Hong Kong is also seeing a brain drain as young professionals look to other markets to start their firms and purchases houses due to the high costs in here.