Traditional international occupiers have moved away from the iconic buildings of Hong Kong because of high costs
The Royal Institution of Chartered Surveyors (Ric`s ) has recently announced the report of “Corporate Real Estate: Investment and Global Cities” which shows that locations of businesses have an impact on policy makers, causing them to adjust policies to attract both employers and employees. Findings are drawn from Ric`s discussion forums investigating nine global cities, and examining factors attracting or deterring corporations from locating their commercial and industrial space in various cities.
The findings also show that while cities are facing competition around the globe to attract and retain companies’ commercial and industrial sites, in many cases they fail to provide business with a coherent case to locate.
In Hong Kong, many of the major traditional international occupiers have moved away from the iconic buildings in the Central because of high costs; however, an increasing trend of occupation of office buildings in Central by technology brands such as Google and Apple. Hong Kong’s key competitor in the region is Singapore, which has attracted occupiers by providing significant incentives over the past five years and offering a relatively good planning system and commercial development measures. Companies in the Asia Pacific Region are also increasingly viewing Manila as an optimal location for back office staff members due to the high cost to house them in Hong Kong. The pull factors to Manila are low employment costs and better English in the Philippines.