\n<\/p>\n
\n Positioning of both cities as regional hubs driven by target business geographies <\/p>\n
HONG
“When we compared the office rental
“As the two cities continue to attract investors
“In Hong Kong, small to medium-sized occupiers in the finance
Below
Outlook<\/b><\/p>\n
Singapore
However,
Hong
An
From an
“We believe the outlook for the Hong Kong office
Hong
Year<\/p>\n
\n <\/td>\n
<\/p>\n HK Greater Central\u00a0<\/p>\n (Grade A) (USD psf pm)<\/p>\n
\n <\/td>\n
<\/p>\n SG Grade A CBD\u00a0<\/p>\n (USD psf pm)<\/p>\n
\n <\/td>\n
<\/p>\n HK\/SG Rental Premium<\/p>\n
\n <\/td>\n
2011<\/p>\n
\n <\/td>\n
<\/p>\n 16.49<\/p>\n
\n <\/td>\n
<\/p>\n 7.72<\/p>\n
\n <\/td>\n
<\/p>\n 114%<\/p>\n
\n <\/td>\n
2012<\/p>\n
\n <\/td>\n
<\/p>\n 13.97<\/p>\n
\n <\/td>\n
<\/p>\n 7.00<\/p>\n
\n <\/td>\n
<\/p>\n 99%<\/p>\n
\n <\/td>\n
2013<\/p>\n
\n <\/td>\n
<\/p>\n 13.89<\/p>\n
\n <\/td>\n
<\/p>\n 7.50<\/p>\n
\n <\/td>\n
<\/p>\n 85%<\/p>\n
\n <\/td>\n
2014<\/p>\n
\n <\/td>\n
<\/p>\n 13.88<\/p>\n
\n <\/td>\n
<\/p>\n 8.13<\/p>\n
\n <\/td>\n
<\/p>\n 71%<\/p>\n
\n <\/td>\n
2015<\/p>\n
\n <\/td>\n
<\/p>\n 15.87<\/p>\n
\n <\/td>\n
<\/p>\n 6.74<\/p>\n
\n <\/td>\n
<\/p>\n 135%<\/p>\n
\n <\/td>\n
2016<\/p>\n
\n <\/td>\n
<\/p>\n 16.98<\/p>\n
\n <\/td>\n
<\/p>\n 6.25<\/p>\n
\n <\/td>\n
<\/p>\n 172%<\/p>\n
\n <\/td>\n
2017<\/p>\n
\n <\/td>\n
<\/p>\n 18.19<\/p>\n
\n <\/td>\n
<\/p>\n 6.67<\/p>\n
\n <\/td>\n
<\/p>\n 173%<\/p>\n
\n <\/td>\n
2018<\/p>\n
\n <\/td>\n
<\/p>\n 19.09<\/p>\n
\n <\/td>\n
<\/p>\n 7.69<\/p>\n
\n <\/td>\n
<\/p>\n 148%<\/p>\n
\n <\/td>\n
2019<\/p>\n
\n <\/td>\n
<\/p>\n 18.05<\/p>\n
\n <\/td>\n
<\/p>\n 7.82<\/p>\n
\n <\/td>\n
<\/p>\n 131%<\/p>\n
\n <\/td>\n
2020<\/p>\n
\n <\/td>\n
<\/p>\n 14.46<\/p>\n
\n <\/td>\n
<\/p>\n 6.94<\/p>\n
\n <\/td>\n
<\/p>\n 108%<\/p>\n
\n <\/td>\n
2021F<\/p>\n
\n <\/td>\n
<\/p>\n 13.53<\/p>\n
\n <\/td>\n
<\/p>\n 7.14<\/p>\n
\n <\/td>\n
<\/p>\n 89%<\/p>\n
\n <\/td>\n
2022F<\/p>\n
\n <\/td>\n
<\/p>\n 12.91<\/p>\n
\n <\/td>\n
<\/p>\n 7.18<\/p>\n
\n <\/td>\n
<\/p>\n 80%<\/p>\n
\n <\/td>\n
2023F<\/p>\n
\n <\/td>\n
<\/p>\n 12.45<\/p>\n
\n <\/td>\n
<\/p>\n 7.40<\/p>\n
\n <\/td>\n
<\/p>\n 68%<\/p>\n
\n <\/td>\n
2024F<\/p>\n
\n <\/td>\n
<\/p>\n 13.00<\/p>\n
\n <\/td>\n
<\/p>\n 7.65<\/p>\n
\n <\/td>\n
<\/p>\n 70%<\/p>\n
\n <\/td>\n
Source:
\u00a0<\/p>\n
Note:
Positioning of both cities as regional hubs driven by target business geographies HONG
KONG SAR –\u00a0Media OutReach–\u00a024
August 2021 –\u00a0The
office rental premium between Hong Kong and Singapore have narrowed markedly between
2015 and 2020, according to Cushman & Wakefield.
“When we compared the office rental
premiums between the two cities in 2015 …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/17129"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=17129"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/17129\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=17129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=17129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=17129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nKONG SAR –\u00a0Media OutReach<\/a>–\u00a024
\nAugust 2021 –\u00a0<\/b>The
\noffice rental premium between Hong Kong and Singapore have narrowed markedly between
\n2015 and 2020, according to Cushman & Wakefield<\/a>. <\/p>\n
\n
<\/p>\n
\npremiums between the two cities in 2015 and looked at which city had a more
\ncompetitive edge as a choice of regional headquarters location, the rental gap
\nwas at 135% in favour of Singapore. Five years later, this gap has narrowed to 108%,
\nwhich creates a positive opportunity for Hong Kong as it becomes more
\ncompetitive,” said Keith Chan, Head of Research, Hong Kong, Cushman &
\nWakefield. <\/b><\/p>\n
\n
<\/p>\n
\nand occupiers, we are seeing a more defined role whereby companies looking for
\nmore exposure to China will prefer to have Hong Kong as its regional base while
\nSingapore is a better location for companies looking to grow and capitalize on
\nthe emerging South East Asian markets. For example, China’s tech companies
\nincluding Tencent, Alibaba and ByteDance have set up base in Singapore to tap
\ninto the opportunities within SEA,” noted Wong Xian Yang, Head of Research,
\nSingapore, Cushman & Wakefield<\/b>.<\/p>\n
\n
<\/p>\n
\nsector such as private equity funds, hedge funds, asset managers, wealth
\nmanagement and crypto currency service providers are expanding their presence to
\nleverage the city’s position as the gateway to Chinese capital,” continued Keith
\nChan, Head of Research, Hong Kong, Cushman & Wakefield<\/b>.
\n
<\/p>\n
\nis a snapshot of the office rental performance of both markets between
\n2015-2020:<\/p>\n\n
\nSingapore Grade A CBD office rents widened rapidly in 2015 to reach 135% from
\n71% in 2014 as Hong Kong rents went on an uptrend due to tight supply
\nconditions and strong demand from corporate occupiers especially from Chinese
\nfinancial firms looking for prime multi-floor space in the CBD. <\/li>\n
\nin 2015 as the office market was hit by a double whammy of weak global economic
\ngrowth and a supply glut. <\/li>\n
\npeak of 173% in 2017, at which point the Singapore market started to recover,
\ndriven by a recovering global economy and demand from co-working operators and
\ntech companies.<\/li>\n
\nmarket rents rose by 15.3% y-o-y amidst tight vacancies and strong demand while
\nHong Kong rents rose by a lesser 4.9% y-o-y in USD terms. <\/li>\n
\nthe protests in the latter half of 2019, the rental gap continued to close over
\nthis time period and was further exacerbated by the pandemic which further
\ndrove rents down in both cities. As of end 2020, we saw a 108% difference
\nbetween Singapore and Hong Kong.<\/li>\n<\/ul>\n
\n
<\/p>\n
<\/u><\/b>Despite
\nthe ongoing pandemic, the Singapore office market is showing signs of recovery
\nwith rental growth turning positive in 2Q 2021. This is fueled by a flight to
\nquality with demand for quality office space driven by technology and
\ninvestment management companies as they leverage the lower rents to secure
\nspaces in trophy buildings. Also, Singapore’s GDP growth is expected to bounce
\nback in 2021 and business confidence remains firm given Singapore’s relatively
\nstrong pandemic track record in the region. Furthermore, new office supply has
\nseen strong pre-commitment rates and the pandemic situation has led to delays
\nin building completions fueling a tight supply situation in the Grade A office
\nmarket. Nonetheless, the recovery in office rents is expected to be mild over
\nthe next few years on the back of lower structural demand for office space due
\nto remote working. <\/p>\n
\n
<\/p>\n
\nthe expected increase in Singapore office rents reflects the city’s increasing
\nimportance as a hub for stability in an uncertain operating environment and the
\nincreased significance of the ASEAN market to corporate occupiers. With the
\nsuccessful roll-out of its vaccination programme coupled with a progressive
\neconomic recovery plan, the country has maintained its reputation as a safe and
\nstable investment destination and regional business hub. <\/p>\n
\n
<\/p>\n
\nKong
<\/u><\/b>Hong
\nKong rents are still expected to downtrend till 2023, closing the rental gap
\nbetween cities. The city’s Grade A new office supply adds up to circa. 5
\nmillion sf from now to 2023 and when combined with the sizable stock already
\navailable in the market will put pressure on the city’s rentals. Landlords in
\nthe CBD are more willing to offer competitive incentives in order to retain
\nexisting tenants, or to lure potential tenants relocating from other submarkets.
\n<\/p>\n
\n
<\/p>\n
\nongoing rental adjustment will continue to take place until a significant
\nportion of new stock is being absorbed by the market, which will take about 2
\nto 3 years. These market changes present office tenants with an excellent
\nopportunity to upgrade their office space and as the market stabilizes and
\nreinvigorates itself, Hong Kong will be well-positioned to capitalize on the
\nexpected surge in activity when cross-border travel resumes. <\/p>\n
\n
<\/p>\n
\noffice occupier perspective, conversations around business and operational
\nstrategies as they relate to location and space requirements will continue to
\ngain momentum amidst the evolving pandemic situation and changes in regulatory
\nframework and policies. It is more important now than ever before for corporate
\noccupiers to be aware of the variability in rental trajectories and proactively
\nstrategise to capitalise on expected rental declines or minimise rental
\nincreases. They should align their real estate strategy to corporate enterprise
\ngoals, especially when considering alternative locations. They should also
\ncalculate their space requirements accurately through workplace analysis and
\napply thoughtful design and fit-out standards to help ensure maximum
\nproductivity. These strategies will define how they optimise their office space
\nwith minimal cost exposures over the course of their lease period, in whichever
\ncity they choose to be. <\/p>\n
\n
<\/p>\n
\nmarket is positive as Hong Kong is in pole position as the regional finance hub
\nin Asia Pacific due to a number of favourable factors such as the ongoing
\ndevelopment of the Greater Bay Area, low tax rates, active IPO market and its
\nposition as a global offshore RMB centre, providing unparalleled access to
\nMainland markets,” concluded Keith
\nHemshall, Executive Director & Head of Office Services, Hong Kong, Cushman
\n& Wakefield.<\/b><\/p>\n
\n
<\/p>\n
\nKong vs Singapore Grade A Office Rents<\/u><\/b><\/p>\n\n\n
\n
<\/p>\n
<\/p>\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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<\/p>\n
\n <\/tr>\n\n
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<\/p>\n
<\/p>\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
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\n <\/tr>\n\n
<\/p>\n
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<\/p>\n
<\/p>\n
\n <\/tr>\n<\/tbody>\n<\/table>\n
\n
<\/p>\n
\nCushman & Wakefield<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nRents quoted here refer to the total occupancy costs in USD psf pm, which is
\nnet effective rents plus service charge, focusing on Greater Central for Hong
\nKong and the CBD for Singapore.<\/p>\n<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"