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Over a fifth of Hong Kong’s office tenants likely to reduce office space, with many relocating to mainland China and Singapore, study finds
- More than a fifth of the respondents polled in Hong Kong said they would downsize their office space in the next two years and relocate elsewhere
- Poll respondents cite cost cutting, shrinking business demand and work-from-home policy implementation as the reasons behind their choice
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More than a fifth of office tenants in Hong Kong are likely to downsize their space in the next two years with some even looking to relocate to mainland China, Singapore and other parts of the world as they cut costs in a weak economic environment, according to a study released by Colliers on Wednesday.
In a poll of 321 companies, the first since Hong Kong and mainland China scrapped all coronavirus pandemic curbs, 21 per cent or 69 of the respondents said they were likely to trim their operations, citing costs, shrinking business demand and further implementation of work-from-home policy as the top three reasons for their outlook.
“Some occupiers mentioned that their company’s capacity to relocate contributed to their decision,” the study by the property consultancy said. “Among all occupiers planning to downsize, 14 per cent cited relocating capacity to mainland China, 13 per cent to Singapore and 9 per cent to other parts of the world.”
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