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SOURCE: Janus Corporate Solutions
Declining rental prices and the slow global economy are giving foreign companies the perfect opportunity to snag office space in the city, says leading Hong Kong company incorporation portal GuideMeHongKong.
Hong Kong (PRWEB) February 02, 2013
“Despite a reputation for having expensive rents, property prices in Hong Kong's top office and commercial locations actually got more affordable in 2012. This was most evident in the prestigious Central district, which shed its dubious title of being the world's most expensive place to lease an office,” said Ms. Jacqueline Low, Chief Operating Officer of Janus Corporate Solutions, a leading Hong Kong company incorporation services firm and the parent company of GuideMeHongKong.
According to a report by international property consultancy firm DTZ, London's West End overtook Hong Kong's Central as the world's costliest office location. The annual occupancy per desk in Hong Kong fell 12 percent to US$22,190, while West End workstations remained relatively stable at US$23,500. In 2011, occupancy costs in Central were 11 percent higher than the West End.
“What's happening now in Hong Kong is that many of the foreign companies who used to occupy these high-rent areas in the city have been affected by the slow global economy, and this has led them to do some cost cutting. They end up downsizing their office space in Central, or move to some of the other popular office space locations in Hong Kong such as Causeway Bay and Kowloon East,” she explained.
“The consequence of this exodus of companies to cheaper business districts means lower demand in the more popular locations. 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,” revealed Ms. Low.
However, even as prices are currently attractive at the moment, they are not expected to stay at the same level by the end of 2013. This is because many mainland Chinese companies are currently looking to expand their global presence, and see Hong Kong as the first step to reaching the global market.
The rising Hong Kong population will also play a factor. There are currently almost 7.1 million people in Hong Kong, and this continues to grow due to expatriates and immigrants from mainland China. According to the government, 102,234 immigrants entered the city last year – a 21 percent rise from 2010.
“Companies must also realize that time is of the essence. More people are coming to Hong Kong, and thus others are also seeing opportunities to do business. Analysis by property firms such as DTZ states that monthly rentals in Central are HK$103 to HK$104. However, this is expected to slowly rise and reach HK$108 by the end of the year. That's why 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,” she advised.
About Janus Corporate Solutions Pte Ltd
Janus Corporate Solutions Pte Ltd is a leading Hong Kong incorporation services firm that provides comprehensive and cost-effective Hong Kong company registration, immigration visa, accounting and tax filing services to businesses and entrepreneurs worldwide. For more information, visit http://www.guidemehongkong.com
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