Soaring main street rents and property prices have pushed up rents of mini-offices in industrial buildings by over 10% in the past few months. Demand for small offices in industrial buildings – available at monthly rents of around HK$4,000 or below and scattered in areas such as Kwun Tong and Cheung Sha Wan – had increased by about 3% to 5%. The increase was driven by a growing number of people starting their own businesses and enterprises relocating to cheaper premises to escape rising main street rents.
Hong Kong office space cost US$191.97 per sq ft per year at the end of last year, the highest in the world. Costs were up nearly 19% from US$161.42 per sq ft per annum in June last year. Hong Kong’s top-priced offices were followed by offices in London’s West End and Tokyo, priced at US$133.02 and US$105 per sq ft per year.