As the world’s freest economy, with its proximity with China and its relations with the Asia-Pacific countries, Hong Kong is undoubtedly a great place to do business and to set up an office.
However, the city is also home to some of the world’s most expensive office properties, according to Reuters, which makes renting the right office of key importance to your business’ financial success.
How is Office Rent Cost Calculated in Hong Kong?
There are two main types of office rents that can be found in Hong Kong. The first is rent by square foot and the second is rent per seat. Each distinct rent type has its own advantages and disadvantages depending on what type of business you’re running.
Renting by square foot is the norm for companies who are looking to rent traditional offices, directly from a landlord, as you would do for an apartment. In this case, the company prefers to rent a whole office space that they can tailor to their needs with preferred fit out and amenities like meeting rooms, artwork and lighting that makes their workspace look extremely prestigious to create a strong first impression.
Rent by seat is usually the norm for office rental provider like coworking spaces or serviced offices. They allow tenants to adopt a rent by seat model, whereby all of the amenities and décor is taken care of and companies rent out workspaces based on how many employees they have. This model is more economically-friendly and is suited for a wide variety of businesses.
“Since serviced offices actually offer a blend of private office space and shared amenities -like meeting rooms- most SMEs can host clients and have a professional office to work out of”, mentions Amy Lam from Compass Offices, one of the leading serviced office providers in the city.
What are the Average Rent Costs in Hong Kong?
In 2021, Knight Frank published a report about the performances of Hong Kong’s offices and the average rental prices in different areas:
- Central : Central is one of Hong Kong’s most premium business districts and rent prices per square foot tend to reflect this. The average cost per square foot is 101.7 HKD.
- Sheung Wan : Sheung Wan offers a blend of high-end and comparatively affordable office rental spaces. Average prices per square foot are around 60.4 HKD.
- Admiralty : Another of Hong Kong’s more premium business destinations, offices in Admiralty are convenient, but command higher prices on average at 72.3 HKD per square foot.
- North Point : A growing business district on Hong Kong island with harbour views, North Point is becoming a coveted location for businesses because of its lower rent costs at around 41.1 HKD per square foot.
- Causeway Bay : One of Hong Kong’s premier shopping and commercial districts, office rents in Causeway Bay are higher at around 61 HKD per square foot.
- Quarry Bay : Offering a great blend of affordable and luxury rental spaces, Quarry Bay’s average rent price of 47.9 HKD per square foot means there’s spaces suitable for bargain hunters and high-end businesses, alike.
- Tsim Sha Tsui : As Kowloon’s premium shopping and business district, Tsim Sha Tsui commands high rent prices thanks to its harbour proximity and transportation options. Expect to pay around 55.8 HKD per square foot here.
- Cheung Sha Wan : Perfect for those looking to rent a spacious and affordable office that’s still convenient to get to, expect to pay 27.8 HKD per square foot for office spaces in Cheung Sha Wan.
- Hung Hom : Another of Kowloon’s popular business districts, Hung Hom’s harbourside proximity means office spaces cost more than most other Kowloon offices. Rent per square foot is roughly 39.9 HKD here.
- Kowloon East : One of Kowloon’s newest and fastest-growing districts, Kowloon East offers affordable offices that are great for SMEs. Average rent prices per square foot hover around 26.9 HKD.
- Mong Kok & Yau Ma Tei : As one of Hong Kong’s most gentrified, densely-populated and iconic duo of districts, it’s little wonder that office rents in Mong Kok and Yau Ma Tei are pricy. The average cost per square foot is about 51.3 HKD in these vibrant districts.
With a broader understanding of how much it costs to rent an office space in several of Hong Kong’s most popular business districts, you can choose which location fits your budget best. Remember, if you’re looking for a lower-cost but high-quality alternative to traditional renting, try out serviced offices or shared spaces where furniture, amenities and setup costs are waived and you only pay for the number of seats you require.