Published: 30 Sep 2022
Updated: 30 Sep 2022
Category: Serviced Office , Office Space , Office , Flexible Workspace , Workspace

How Much Does It Cost to Rent an Office in Hong Kong?

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For decades, Hong Kong has been recognised as a financial and business hub. Its location on the tip of Asia and positioning as a meeting point between East and West has helped it attract companies and talents from all over the world to base themselves in Hong Kong. The cost of renting an office varies across the city’s 18 districts, with advantages like proximity to business districts, office type, and infrastructure availability influencing prices.
 

What types of office to rent in Hong Kong

First, it’s important to understand the different types of options you have for office space in Hong Kong. There are traditional offices, where you rent a bare business space and outfit it from scratch; co-working spaces common among entrepreneurs, freelancers looking for networking opportunities, and start-ups; and serviced offices, where you rent a furnished and business-ready office space with flexible lease terms. These various workspace types come with pros and cons that influence their price ranges.

Traditional office leases are usually based on square footage. Contract terms require a long-term commitment ranging anywhere from two to five years. If your company grows in that time, inflexible contract terms will limit your ability to pivot to a more suitable space when you outgrow it. The same goes for if your company shrinks. Conventional office contracts are also infamous for containing hidden costs and costing a lot upfront to design, renovate, and furnish.

With co-working spaces and serviced offices (also known as “business centres”), you have the advantage of being able to rent for months or even days and renting per desk instead of an ambiguous square foot. Because contract terms are more flexible, you are able to budget in a simple way.


What influences the cost of an office?

Besides the type of workspace, there are other criteria that influence the costs of leasing a business space. Considering all the following factors before you start searching for a new office solution will help you stay focused on finding the property and services that are right for your enterprise.

Location

Location is arguably the most important factor when thinking about moving into a new office. Proximity to central business districts (CBDs), such as Central District in Hong Kong or City Area in Singapore, will push rent prices higher. Accessibility with public transportation will also affect cost.

Capacity and number of seats

Consider capacity in terms of company expansion in relationship to your lease term. If your firm is well-established and headcounts are expected to stay the same on average year to year, then it’ll be easier to determine how much space to look for. However, if you’re expecting to grow in the coming two to five years, you may want to consider a larger space.

Building grade

Office space grading is generally broken down into Grades A, B, and C and are determined by building age, amenities, infrastructure, location, and whether the building is professionally managed.
Grade A buildings are at the highest end of the spectrum. These are newly constructed, renovated to specifications with cutting-edge fixtures and technology; architecturally distinct, and located in central business districts.
Grade B properties are not as new, don’t have as high-quality fixtures and lobbies, and are located on the edge of business hubs. Their locations and systems are classified as average, but fully functional.
Grade C commercial buildings are located far away from CBDs with poor accessibility, in need of renovation or repairs due to their age (over 15 years old), and with outdated or few building amenities.

Amenities

Amenities of commercial properties are a significant factor that affect their price. These amenities can include security measures like secure 24-hour entry and CCTV, outdoor space, fitness facilities, lounges and common areas, parking spaces, and even reliable Wi-Fi and city views.

Length of lease

The duration of an office lease can potentially impact your long-term costs. Short-term leases of traditional offices (defined as one to three years) compared to long-term leases (generally defined as five years or more) may be more concrete in terms of their price. Depending on the culture, it can be possible to negotiate with the landlord or serviced office provider about securing a lower price if you commit to a longer lease period.


How much does it cost to rent an office in Hong Kong?

The main business districts in Hong Kong are Central, Sheung Wan, Admiralty, Wan Chai, Causeway Bay, North Point, Tsim Sha Tsui, and Mong Kok. The most expensive business space is in Central, and the second most expensive office rent cost is in Sheung Wan. In the first quarter of 2022, the average monthly rent for Grade A office space in Central district was HK$1,096 per square meter; in Sheung Wan, it was HK$812 per square meter.

The cheapest private office rent price in Hong Kong is in Kwun Tong district, with Grade A business space costing HK$367 per square meter and Grade C office leases coming in at HK$112 per square meter.

Average Rents by Grade and District in 2022 Q.2(HK$ / m2 per month)

District

Grade

Rent for 2nd Quarter ($)

YOY Change

Sheung Wan

A

917

-0.7%

B

494

1.8%

C

401

-3.5%

Central

A

1028

-5.6%

B

860

5.1%

C

548

-6.2%

Wan Chai / Causeway Bay

A

646

-7.3%

B

507

0.2%

C

503

2.0%

North Point / Quarry Bay

A

529

-15.3%

B

474

6.5%

C

436

-2.1%

Tsim Sha Tsui

A

506

0.8%

B

438

-2.7%

C

462

-1.3%

Yau Ma Tei / Mong Kok

A

661

5.1%

B

479

5.0%

C

427

1.9%

Kowloon Bay / Kwun Tong

A

371

8.1%

B

286

-8.7%

C

120*

-12.5%

 *    Indicates fewer than 5 transactions.

Office rent costs in Hong Kong have seen a downward trend in recent years. However, start-ups and SMEs are still feeling the pressure of operation costs and high startup costs on top of the rent itself. In the post-Covid era and the advent of ‘The New Workplace’, employees are demanding more trust and flexibility and have come to expect hybrid working arrangements.

In this landscape, affordable short-term rentals with flexible lease terms are becoming more popular because they facilitate the ability to quickly scale up or down, cut renovation costs, and allow for immediate occupation.

Compared to traditional offices, Hong Kong office rent prices slightly differ for business centres and co-working spaces. The prices for these flexible workplaces are calculated per workspace, usually defined as a private desk with basic fittings. Amenities like internet connection, meeting rooms, pantry facilities, and reception services are included in the cost.

The shared office rent price in Central ranges from HK$20,000 to HK$35,000 for 2-3 workstations, while 2-3 workstations outside central business districts costs around HK$15,000. Compass Offices has more than 10 business centres located in preferred addresses around Hong Kong, offering desks ranging from an affordable HK$3,500 to HK$14,000 depending on the location and size of your secured office.


Where to start

To start looking for a cost-effective office lease in Hong Kong, contact Compass Offices at +852 3796 7188 to discuss the best short-term or long-term flexible workspace solution for your firm. We can arrange a centre visit, then formulate a quotation based on your unique requirements.

You may decide that a fully furnished, ready-to-move-in space is more suitable; or we can craft a tailored workspace for you with customisable design and fit-outs. We understand that your time is precious, so subject to availability, you can even move in on the day of agreement signing.

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