Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Office decentralisation trend in Hong Kong EJINSIGHT

Office decentralisation trend in Hong Kong EJINSIGHT

In Hong Kong, workers have grown accustomed to having the flexibility to work remotely as a result of the pandemic, which saw the biggest remote working experiment in history.
Remote working arrangements have significantly cut down commute time and costs – which have long been a source of stress for many, thereby allowing workers to have more control of their daily schedule and improving overall work-life balance. This shift in employee behaviour and mindset has resulted in a growing demand for offices to be located closer to where people live, well-connected and cost-effective.

Yet, with all the hype about remote working, the workforce is not quite ready to completely let go of physical workspaces. There is still a pertinent need for a physical office from time to time, notably, to create and strengthen organisational culture, and facilitate efficient discussions through face-to-face contact, amongst others. This is why hybrid work arrangements are fast emerging as the preferred way for many companies – whether from home, the office, or co-working spaces that bridge the two – enabling employees to have access to more than just one traditional way of working. Flexible working has also brought about a host of benefits to both employers and employees alike – such as reduced costs and better work-life balance respectively, to name a few. In addition, IWG’s research has also shown that flexible working is now a deal breaker in the war for talent – with 83% of workers around the world citing that they would turn down a job that did not offer flexible working.

As such, companies are now rethinking their office set-up, and are looking to incorporate more flex into the way they work and operate. One of the ways in which they can do so is through opting for convenient co-working spaces closer to people’s homes as opposed to a permanent office set-up. Many co-working spaces come with industry-leading technology that allows teams to collaborate more seamlessly and boost productivity, and also have the option of shorter lease commitments. According to IWG, the demand for flexible workspaces is strong in Hong Kong, with inquiry rate up 30% compared with pre-COVID. Demand is particularly strong in locations such as Kowloon East, Mong Kok and Tsim Sha Tsui, comparing to the traditional central business districts (CBDs) on the Hong Kong island.

Hong Kong has long been an international finance hub and the need for quality office spaces can no longer be met by solely traditional CBDs. This challenge has also been addressed by the Hong Kong Government by rolling out the “Energising Kowloon East” initiative to promote the area as a new CBD. The 488-hectare Kowloon East comprises of Kai Tak Development, Kwun Tong and Kowloon Bay Business Areas will provide cost-effective options of high grade office buildings and retail centres to support Hong Kong’s long-term economic development.

According to the Development Bureau, the estimated working population for the district will be over 326,000 in 2024. According to a CBRE research, the majority of office development, investment and leasing activities will focus on the up-and-coming CBD locations such as Kowloon East, West Kowloon and Wong Chuk Hang in the next 5 to 10 years, with Kowloon East having the greatest capability to emerge into a premier office submarket.


These irrevocable shifts in the office real estate market has in turn placed increasing pressure on real estate landlords to adapt to the changing needs of corporate office occupiers who are already reducing footprint in search for more flexible workspaces and agreements – whether through shorter leases or monthly rentals.

According to JLL, total surrender space has risen to a record-high of 1.77 million sq ft as an attempt to save rental costs under the gloomy economic outlook. However, the real crunch for landlords would not come immediately as tenants are tied to leases, so landlords need to act now or risk securing new leases down the road. With 30% of the global office inventory projected to become flexible by 2030, landlords that partner with flexible workspace providers will likely be more attractive to companies as they rethink their real estate strategy and seek to adopt flexible working arrangements in the post-pandemic era.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×