Rising rents mean relocation

PUBLISHED : Friday, 07 May, 2010, 12:00am
UPDATED : Friday, 07 May, 2010, 12:00am

Baat Gwaa's best friend Alice rang up the other day and declared: 'I am not slumming it anymore!'

Alice has been working in Kwun Tong - or the Siberia of Hong Kong as she calls it - for the past nine months since her consultancy company moved there to cut costs.

Now that the job market is more favourable, she has decided to find another job so that she can 'return to civilisation' and get back to prestigious locations such as Central and Admiralty.

In Hong Kong, rising rents continue to reduce profitability, affect business sustainability and impinge upon long-term development and human resources policies.

Baat Gwaa hears that if rents continue upwards, more companies may be forced to relocate staff and offices to the mainland, or hire across the border where salaries are much lower.

According to the general manager of Manpower Hong Kong and Macau, Lancy Chui, outsourcing non-core functions by transferring them to service providers to reduce staff and office costs will be another popular option.