International firms shrug off rocketing office space rents in Hong Kong

They can't be stopped from expanding.

It is observed that the Asia-Pacific region as a prominent future growth market for serviced offices, due to the high volume of global enquires from international businesses looking to extend their international reach, and with the region exhibiting the highest economic growth within global prime occupancy costs, rising 2.9% in the past year.

According to a release from Instant, in line with this, the company has identified a recent trend towards larger corporations seeking bigger offices and longer contracts in the Asia-Pacific region, indicating permanence to their interest in the region.

For smaller organisations, there is a simultaneous trend for renting co-working spaces, offering affordable and flexible leases.

This suggests, the release said, that smaller organisations are keen to try out the Asia-Pacific region in the early stages of their business growth.

Here’s more from Instant:

Despite the high cost of office space within Asian cities, companies with an ‘act locally, think globally’ approach continue to relocate to the region, pushing prices up further as demand increases.

While the reasons for skyrocketing costs differ from city to city, Hong Kong’s occupancy rates beat the notoriously expensive West End of London, due to increased interest from key multinational companies within the financial sector.

Cities in demand include Hong Kong, Tokyo, Beijing, New Delhi and Singapore; the operations of international businesses are accelerated by favourable regulations.

These cities are also considered to be most attractive to Western talent who will relocate for job opportunities, further driving up the cost of commercial (and residential) property.

Different Asian cities continue to attract a balance between large corporations and SMEs, with well-known finance companies from China’s mainland targeting Hong Kong – this in comparison to Singapore, which has been garnering a reputation as a hub for the SME tech market.

Recent major leasing deals in Hong Kong include Hanergy, Huatai Financial, China Securities International and Shunfeng Photovoltaic International.

Sophie Turnbull, Senior Operator Relationship Manager at Instant Says: The Asia Pacific serviced office market has grown rapidly over the last 18 months and Instant has seen an increase in clients looking for locations in good central business districts.

Not only are large corporations opening up in the region, but medium-sized global companies are taking the opportunity to obtain great work space in a rapidly growing area.