2017 // GLOBAL CITIES - The flexible workspace market review
Hong Kong’s flexible office market has grown exponentially in the past two years. The city’s flourishing Technology, Media and Telecomms sector has expanded rapidly and driven up demand for non-conventional space. The fast growth in this sector and further demand for co-working, serviced offices and other flexible workspace, leads us to confidently predict that it is set for continued growth and increasingly operators are looking to the region for opportunities.
The growth was initially quite localised to its tech hub in Cyberport, but this has subsequently become a citywide phenomenon. Further acquisition of space by flexible office operators is set across the City and further afield. Supply remains relatively constrained however, which means that prices are high in comparison to other cities in the world - although this is symptomatic of the conventional office market in Hong Kong. There are now 202 flexible workspaces available in Hong Kong, which compares to 330 in New York City and 1,136 in London. This is more than any of the key cities in the EMEA region, with the exception of London. Paris is lagging behind at just 156 centres and Berlin in third place with 123. The Hong Kong market has grown by 16% in the last year and has approximately doubled in size in the past two years.
Current average desk rates in Hong Kong are approximately 31% cheaper than London ($616 compared to $897) and almost half as cheap (44%) as New York City, which is $1,110. This also means that flexible workspace is less expensive in Hong Kong than both Paris at $842, but also the two key cities of the Middle East, Abu Dhabi and Dubai at $717 and $755 respectively. This is in direct contrast to conventional office rents where Hong Kong has some of the most expensive real estate in the world and shows the benefits of procuring flexible space in such a competitive market.
Published: June 2017
By: Instant Offices