- 1 Minute Read
- 13th February 2013
Hong Kong office space ripe & ready
Now is the perfect time to buy office space in Hong Kong, according to a report from the leading Hong Kong focused business information portal, GuideMeHongKong.
According to the company, declining rental prices and a slowing global economy make it the perfect time to buy office space in the city, which until recently was enjoying a surge of foreign investment.
Annual rental prices per desk have fallen by 12% in Hong Kong Central – once the world’s most expensive office location – according to a report by international property consultancy firm DTZ, but let set to quickly rise within 2013.
According to DTZ, prices have fallen as demand for the office space in the Central district has waned, with, “foreign companies who used to occupy these high-rent areas in the city… affected by the slowing global economy… end up downsizing their office space in Central, or move to some of the other popular locations in Hong Kong.”
“Lower demand means lower rents. So now, foreign companies looking to set up a company in Hong Kong will be able to find rental spaces in the most sought-after places – and at rates that are relatively more affordable than what they were before.”
Prices won’t remain attractive for long though, as many Chinese companies looking to expand their global presence, typically focus their initial expansion on the office markets of Hong Kong.
Other factors contributing to a quick rise in office space prices in the city is its expanding population, which, according to the government, experienced a 21% increase in immigration during 2012.
DTZ say that, “companies must act quickly” and “get the best Hong Kong office space options for them so that they don’t end up having to pay more by the time the second half of 2013 comes around.”