Singapore’s office market outperforms Hong Kong’s as the rival Asian hubs battle coronavirus outbreak

Hong Kong has seen occupancy and premium office rental rates slide as some mainland Chinese firms have bailed amid the pandemic

The market had already taken a hit from the social unrest that prevailed during the second half of 2019

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People walk past office buildings in the central business district in Singapore. Photo: Reuters

Published: 7:15am, 9 Apr 2020Updated: 6:47pm, 9 Apr 2020

Singapore’s office market has weathered the coronavirus pandemic better than rival Hong Kong’s, data shows, as the latter relies more heavily on mainland Chinese companies, many of which have bailed amid the crisis.

Premium office rents in Singapore’s central business district were unchanged from the fourth quarter of 2019, according to property consultancy Colliers.

Those in Hong Kong fell 5.2 per cent in the quarter, the biggest decline in over a decade, data from Savills shows.

The amount of vacant office space in Hong Kong climbed to 524,947 square feet in the first three months of 2020, from 377,990 square feet in the previous quarter, the biggest such increase for 18 years.

“Singapore’s office market is actually more cyclical than that of Hong Kong, because we do not have a big demand driver from the mainland Chinese corporates,” said Christine Li, Cushman’s head of research, Singapore and Southeast Asia.