Hong Kong office expansion lags hiring push as tenants optimise current space: Colliers
More than a third of Hong Kong’s office tenants are expecting to increase headcounts over the next 12 months, but only a fifth are likely to expand their real estate footprint, according to a survey by Colliers. The results of the fourth annual Hong Kong occupier survey by the property consultancy pointed to a “growing disconnect between hiring intentions and office expansion plans, as many…
A survey conducted by Colliers revealed a disconnect between Hong Kong's office tenants' hiring intentions and their plans for expanding real estate footprint. Despite 43% of respondents expecting business conditions to improve over the next year, only 20% were likely to expand their office space. Instead, many occupiers are focusing on optimising their current space through more efficient utilisation and evolving workplace strategies.
This trend was observed across various industries, with 31% of professional and business services sector tenants planning to expand, followed by 26% in banking and financial services and 25% in real estate and construction. Conversely, 28% of technology, media, and telecommunications companies intended to reduce their office size, primarily due to cost reduction and shrinking business demand.
Banks and financial services companies showed the most hiring intentions, with 50% anticipating headcount growth. Tenant retention would increasingly depend on delivering an overall occupier experience and providing incentives and effective rental strategies. Among relocation tenants, 71% cited lower rents as the main reason, while 60% from Kowloon East and 56% from Greater Tsim Sha Tsui demanded reductions.
Premium office space in Central is tightening, and future commercial land planning should support the district's long-term evolution, with Admiralty and the New Central Harbourfront as an integrated business district.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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