Macroscope | Hong Kong demand picks up for offices that promote well-being and belonging

With the rise in hybrid working and higher staff expectations, more firms are choosing offices with wellness, ESG and a sense of community to boost productivity

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Companies are incorporating wellness features such as de-stressing areas, height-adjustable desks, indoor air quality monitoring, meditation rooms and even on-site coffee bars with baristas. Photo: Shutterstock

Published: 3:45pm, 30 Apr 2023

Hong Kong’s workplace landscape is undergoing a significant transformation as companies adapt to the post-pandemic era. The social contract of the workplace in the city has shifted more towards flexibility, wellness and collaboration. This shift is apparent as Hong Kong continues to leverage its position as the financial centre of the Greater Bay Area, attracting both local and international businesses.

Recently, there has been a noticeable increase in optimism and interest surrounding commercial property. According to Cushman & Wakefield, the grade A office market recorded “positive net absorption” of over 250,000 sq ft last year, reversing the contraction experienced in 2020 and 2021.

In everyday language, this means there are more people occupying space than before. It’s an interesting indicator of whether companies are downsizing or expanding.

We are seeing leasing enquiries surpass pre-pandemic levels and while it will take time for these to mature into transactions and be reflected in the occupancy figures, these encouraging green shoots of recovery reflect a return in demand from domestic, international and Chinese companies.

Hong Kong’s unique dynamics, including short commutes and exceptional public transport networks, set it apart from other global cities. Also, working from home is not always feasible for some employees, and some prefer to go back to the office for higher productivity and face-to-face collaboration with colleagues.

This is in sharp contrast to the United States, where office occupancy remains at 40-60 per cent of pre-Covid levels. According to Cushman & Wakefield’s recently published report “Obsolescence Equals Opportunity”, only 17 per cent of workers in the US and 16 per cent in the United Kingdom prefer to return to the office for three or more days per week. In China, this is the preference of more than 80 per cent of workers.