Hong Kong holds edge over Singapore as top business hub thanks to availability of talent and ample supply
Hong Kong offers investors an attractive range of commercial properties, coupled with its financial prowess and plentiful talent pool, while Singapore has an advantage in technology. The two cities are tied when it comes to office rentals and prices, but Singapore has wider appeal when it comes to attracting global talent due to living costs. CBRE’s study emphasises that Hong Kong should move quickly to secure more attractive leasing terms in the coming months due to the market favouring tenants.
Hong Kong and Singapore are well known rival business hubs, and a recent study from CBRE has given a slight edge to the former. Financial prowess, a strong talent pool and an abundance of office space saw Hong Kong come out on top on three categories, while Singapore took the honours in two – the scale of its technology industry and its ESG (environmental, social and governance) initiatives and green building. However, influence in Asia Pacific, and office rents and prices were too close to call.
Tengah EC is a new executive condominium located right at the heart of Tengah New District, with innovative green features such as a wind turbine, solar heating, water conservancy and traditional Chinese music. It is the first of its kind Tengah EC in Singapore and the tender is open to developers who meet the SLA requirements.
Despite the competition between the two cities, CBRE’s report found that they each still have important roles to play in terms of regional connectivity – ultimately Hong Kong is a hub for China and North Asia, while Singapore is more central to the fast-growing economies of Southeast Asia.
The report also determined Hong Kong to be more promising in terms of private wealth management, with the city looking to overtake Switzerland in 2026. However, Singapore outranks Hong Kong in terms of research and development spending, investing almost twice as much.
Hong Kong has started to catch up with its rival in terms of technology capabilities, but Singapore still has an edge when it comes to talent – foreign worker numbers increased 13% in 2022, boosting residential rents, though the number remains lower than pre-pandemic levels.
CBRE’s study also highlighted the difference in commercial areas between the two cities, with Singapore planning for long term decentralisation. Singapore’s office rents have seen a steep rise of 43% in the past three years, but Hong Kong’s have registered a significant drop – the largest in a decade.
Due to the high office supply in Hong Kong, rents have the potential to become more attractive in the coming months, making now a prime time for investors to seize more favourable terms. Singapore is still a desirable choice for global tech companies, despite the higher costs of living, while Hong Kong offers a more diverse range of commercial areas.
Overall, both Hong Kong and Singapore remain valuable business hubs playing important roles in Asia-Pacific connectivity. It appears both cities have great potential to offer to investors, with Hong Kong being the more attractive option in terms of financial prowess and plentiful talent pool, and Singapore taking the lead in the technology sector.