Hong Kong, Singapore, Tokyo office markets likely to survive work-from-home arrangements as small flats seen limiting productivity
- Office vacancy rates in Hong Kong and Singapore have risen in recent quarters due to remote working, economic slump
- Space constraints due to tiny flat sizes in Asian financial hubs not ideal for work from home due to productivity concerns
In Hong Kong, the average size of a flat is 40 square metres (430.5 sq ft), or about the size of three typical car parking bays in the city. Along with 68.8 square metres in Tokyo and 90 square metres in Singapore, the trio have among the smallest dwellings in the world, according to property consultancy JLL.
“We would argue that in places like Hong Kong and Tokyo, and to a certain extent Singapore, because we are living in smaller spaces, it’s not (best) for people to work at home,” said Jonathan Hsu, head of research for Asia at private equity firm M&G Real Estate. “They either have no place to set up a workstation, or they do not have a quiet place to set up a workstation. It’s actually more productive for them to work in the office.”
Companies worldwide have allowed a large swathe of employees to work away from offices as governments imposed lockdowns to stem the coronavirus outbreak. Some arrangements are likely to last for months or even permanently; San Francisco-based Twitter announced in May that it would let employees work from home “forever”.