Hong Kong's Empty Office Spaces

The Henderson, a new skyscraper built on the world’s most expensive plot of land, is set to welcome its flagship resident Christie's in September. However, questions remain over how the landlord will fill its office space amid a property downturn in Hong Kong. For instance, office spaces in One International Finance Center have been leased at a 33% discount. Bloomberg TV's Minmin Low explains.

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[leesboo]

Not many of us are shedding tears for these property billionaires ...

[FrankWu]

A lot of International companies including Google, IBM, Netflix etc which is Asia pacific Headquarters already move their office to Singapore. Because Singapore political aspect is more stable compare to Hong Kong.

[LOLnesssss]

Empty office spaces is a worldwide problem. People just dont need work in office anymore but anywhere, myself work in cafes all day if i want to.

[worldlife]

Investing money in Hong Kong is like throwing money into the garbage.

[alanc]

Is this the start of the $1.6b counter propaganda program?

[paullum]

With so much excess capacity, commercial landlords should consider converting some of this capacity to residential units particularly in older buildings that are due for renovations anyways.

[TL-xwfh]

This sounds like the beginning of the end of loose money in Hong Kong. I think it is the harbinger of a permanent decline of Hong Kong as more and more industries, businesses and finance related companies uproot to Singapore and other South East Asian countries to protect themselves against the CCP.

[calvin_hk]

With corporate tax so low, it is still not able to attract people to set up businesses in HK. Yet the HK gov doesn't tax the rich enough, leaving all these empty office spaces for what? Yet not enough hosuing for low income families.

[jeraldb]

Reminds me of Salesforce Tower in San Francisco which completed construction during the pandemic and is quite vacant as the software company went to a remote work model.

[lastChang]

Hong Kong 🇭🇰, as a financial center, is finished after China introduced the repressive "National Security" laws.
- Talents have left, businesses have closed, and judges have resigned. Millionaires have fled with their money.
- Empty office buildings can be seen all over the former prosperous British colony.

[JamesLydon]

No stranger to empty spaces just like New York

[lamchan]

When China was closed Hong Kong was the gate to access China. As China developed economically, Hong Kong’s value declined as a gateway to China. You no longer need to setup offices in Hong Kong when you can directly have them in Shanghai. Hong Kong’s historical importance and development were always linked to China.

[zzlbbdp]

Hong Kong has lost its reason for existence. Its just another Chinese city now

[emikomina]

They are moving to either Singapore or Tokyo

[ahan]

...and HK citizens living almost homeless. Great leadership!

[GameChanger-crhx]

Rent too high so not a bad thing for a correction. Meanwhile office vacancies in San Francisco approaching 40% Bloomberg must have missed this.

[cuteandfunnyearthlings]

Same as in USA with all the empty offices spaces.

[henkersjourneys]

Hong kong is still my favorite city in asia and yes i also have a company there.

[cda]

back to "normal" needs to see the low first. Current 33% drop is just a start, from 1997 to 2003 A grade office rents went from HK$100 to $20. Maybe this time bottom around $40?

[mrnoname]

People realised how overpriced rents in Hong Kong are for its value. Businesses invest in a location for it's business potential. If it's no longer business attractive and profitable investment to situate in central Hong Kong. Why invest a huge sum in these central offices? Most workers don't even live close to the central location nowadays apart from the late boomers that holds all the properties in Mid-levels. It's a fair market and rental value will only keep falling across Hong Kong. Not to mention it's overpriced residential property values.