World Economy

HK Offices World’s Most Expensive

HK Offices World’s Most ExpensiveHK Offices World’s Most Expensive

Hong Kong has replaced London as the most expensive city for businesses to set up office thanks to the depreciation of British pound and aggressive expansion of mainland companies, survey shows, Nikkei reported. Rental costs per desk for prime office buildings in locations such as Central, Sheung Wan and Admiralty rose 5.5% from last year to $27,432 in 2017. Conversely, the equivalent cost in London’s West End plummeted by 19.2% from a year ago to $22,665, according to statistics compiled by real estate consultancy Cushman & Wakefield. Tokyo ranked third, unchanged from last year. The high office rental costs in Hong Kong have been a headache for executives at international companies who want to expand businesses into Asia. For the cost of housing 100 staff in Hong Kong, 600 can be accommodated in Shenzhen, a Chinese city that borders Hong Kong. Mainland companies’ aggressive global expansion has contributed to the rise of Hong Kong’s ranking this year.

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