Co-working during coronavirus: industry thriving in Hong Kong but struggling in Singapore
- Singapore’s co-working spaces are popular with technology firms – from start-ups to multinational corporations – and the lockdown has hurt many operators
- Hongkongers have been advised to work from home but the city’s cramped living spaces mean co-working firms have continued to prosper
On a recent Friday afternoon, dozens of people sat hunched over laptops at TheDesk’s six-storey co-working space near Hong Kong’s Central business district, while others chatted over snacks at tables on the outdoor terrace – all of them ignoring government advice to work from home to stop the spread of coronavirus.
Whether escaping tiny flats that aren’t conducive to work, or less concerned by a virus that has infected around 1,000 residents compared to more than 110,000 New Yorkers, the surprise result is co-working providers are thriving in Hong Kong, even as much of the world remains in lockdown.
TheDesk signed up 25 per cent more new members in the first quarter versus the quarter prior, according to CEO Thomas Hui.
“I think it’s especially because the living environment in Hong Kong is very cramped, so there are a lot of disruptions to people working from home,” Hui said.
The Executive Centre, a high-end serviced-office operator, leased 33 per cent more desk space in the first quarter in Hong Kong than a year earlier. Across its 135 mostly Asian centres, it grew about 9 per cent in the first three months of the year.
Companies are looking to conserve cash and retain flexibility rather than take the risk of committing to a long-term office lease, said CEO Paul Salnikow.
“The idea of signing a fixed lease with fixed rental commitment over a three-year period, which is the minimum term in Hong Kong, and then investing in the fit-out, buying the furniture, is an over-investment for most companies,” he said.
It’s a different story in Singapore, where a government-ordered shutdown of all but essential services means most workers have to stay home, with employers facing hefty fines or even jail if they don’t enforce the measures.