Hong Kong

The Hong Kong occupier and fit-out markets remain in a relative lull in the continued aftermath of local political volatility over the past few years. This means that while average premium fit-out costs are still relatively high by global standards (HK$31,231 per m2), they are on par with secondary markets like Charlotte and Melbourne, rather than New York or Sydney.

However, there are signs this is beginning to change, with new supply of high-grade space due to come onstream in the coming year, and new large leases being taken by prominent global firms such as Jane Street and major investment banks.

The city has historically been a prime location for flagship headquarters where companies put their unique stamp on fit outs, and we expect to see this returning in the short to medium term. In Hong Kong, occupiers spend where it matters, particularly in financial services. No expense is spared on the client-facing spaces to attract business and accommodate the high expectations of the affluent individuals that are key targets for financial and professional services firms. This is also reflected in the significant gap between low and high-specification fit out costs in Hong Kong, with high costing almost twice that of low specification (HK$16,714 per m2).