Similarities and Differences between Hong Kong and Singapore office leasing scene

Leasing an office in Asia's most dynamic cities, Hong Kong and Singapore can present challenges for businesses in the region. Having recently made the move from Hong Kong to Singapore after spending nine years in the former, I have gained firsthand experience and insights into the similarities and differences between the two cities. During my initial month in Singapore, I embarked on extensive explorations, covering over 100 kilometers on foot and bicycle. 

After working as a commercial broker in Hong Kong and now in Singapore, here are some of my observations of the office leasing scene in both countries:

Hong Kong has gained international recognition for its exorbitant office rental prices, which rank among the highest in the world. In contrast, Singapore's rental prices, while generally lower than those in Hong Kong, still remain relatively high compared to other cities in the region. 

The disparity in office rental prices between the two cities reflects the unique dynamics of their real estate markets. Hong Kong's limited space and pre-pandemic demand have created an environment where rental prices soar to unprecedented levels. Meanwhile, Singapore's market, although still pricey, provides a relatively more stable landscape for businesses seeking office spaces.

During the COVID-19 pandemic, Singapore experienced moderate rental growth as companies expanded their presence in the country. However, this growth pales in comparison to the rental surge witnessed in Hong Kong between 2015 and 2019. During that period, Hong Kong served as a gateway for mainland Chinese companies seeking global opportunities. This influx of companies significantly drove up office rental prices by 30-40% in many highly sought-after buildings over a span of just two to three years. Consequently, tenants in these buildings were compelled to seek more affordable office spaces, creating a ripple effect that impacted the entire market.

Interestingly, this situation in the residential market of Singapore shares certain similarities with Hong Kong's office rental scenario. It's worth noting the exceptional presence of Savills Commercial team working in tandem with Savills' Destination Services team and the Savills Residential team and allows us to offer our clients a complete real estate solution from office leasing to finding a home for the expat employees. 

Whether clients are newcomers to the city, like me, or are individuals seeking a new home, the team's personalized approach can help navigate the market effectively and provide dedicated support and guidance throughout the entire process from setting up a bank account to finding a suitable residential property.

One notable distinction between the two cities lies in the features offered by office buildings, which can have a significant impact on the overall aesthetic and functionality of the workspace. In Singapore, many office buildings boast standard features that cater to the evolving needs of businesses. These include buildings that incorporate plants into their landscapes, larger average floor plates, raised floors, security turnstiles, and backup power. These standard features in Singapore's office buildings give companies seeking office spaces a distinct advantage. Not only do they meet global standards, but they also align with the growing emphasis on environmental, social, and governance (ESG) considerations.

In contrast, numerous corporate tenants in Hong Kong struggle to strike a balance between leasing costs and the quality and location of the building. As a result, some companies in Hong Kong may need to compromise on certain aspects, such as the quality or location of the building, in order to manage leasing costs.

Lease terms and conditions in both Singapore and Hong Kong are known for their relative simplicity, particularly when compared to North America and Europe. The process of searching for suitable office spaces, negotiating leases, and undertaking office design and construction is reasonably comparable in both cities.

The combination of modern skyscrapers, lush greenery, and captivating waterfront panoramas forms a visually striking backdrop that enhances the allure of these vibrant metropolises. This unique combination can act as a remarkable selling point for businesses aiming to leave a lasting impression on clients or cultivate an appealing work environment for their employees.

The public transportation systems in both Singapore and Hong Kong are efficient and reliable, facilitating convenient commuting to and from work. However, it's worth noting that Singapore holds an additional advantage with its modern and cashless payment system, unlike Hong Kong's outdated Octopus Card and reliance on cash payments for taxis.

Overall, my transition from Hong Kong to Singapore has been a positive experience. It is comforting to know that in both cities, one can easily find a good coffee or enjoy a cold beer in numerous locations, highlighting the vibrant lifestyle opportunities available.

Feel free to contact us for your office leasing needs.