Why Asia-Pacific’s flexible workspace market is outpacing its global counterparts

The flexible workspace market in the Asia-Pacific region is now the fastest growing in the world. Supply of flexible workspace centres – those incorporating co-working or serviced offices – in cities across the region has grown consistently above 15 per cent in the last 12 months with the only inhibitor to further growth being a lack of available space for further expansion.

As businesses face increasing challenges globally, many are turning to flexible workspace and alternative methods as a low-risk, cost-effective alternative to traditional office space. HSBC, Standard Chartered Bank, Datacom and American Express have for example, taken large numbers of desks outside traditional lease type arrangements across the region, and other businesses are quickly realising that flex provides a versatile and agile workspace in central locations.

There are now an estimated 8,600 centres across the Asia-Pacific. Given that the markets for this type of space are more mature in the US and Northern Europe, six of the largest city markets for flex space are now in Asia-Pacific. Growth in the region has been exponential and shows little sign of abating.

Of these city markets, Hong Kong currently has the largest supply of space in the region with an estimated 380 flex centres identified by The Instant Group. Despite being a mature market, growth levels continue to rise with an increase of 19 per cent in supply over the last year, almost double the growth in London.

The market in China has seen consolidation, as some of the largest operators have gained greater market share in multiple markets through acquisitions.