Hong Kong co-working operators set to raise rates as consolidation weeds out weaker rivals
- Monthly rent of US$741 for 60 sq ft of co-working space in Hong Kong already the highest among 14 cities in Asia-Pacific
- Colliers sees consolidation in the co-working segment as overexpansion has made it unprofitable for some players.
Rents for co-working space in Hong Kong, already the most expensive in Asia-Pacific at US$741 per month, are set to rise further as the sector undergoes another wave of consolidation even as uptake slows, say industry operators.
According to the latest report from property agency Colliers, Hong Kong, with 141 shared office centres, topped 14 other cities in the region in terms of average desk cost per month, followed by Beijing at US$693, which has 45 co-working centres and Sydney, with 58 centres, at US$690.
Based on Colliers’ average grade A office rent of US$10.08 per square foot per month in Hong Kong, a desk occupying about 60 sq ft, would cost operators US$604, translating to gross earnings of US$136.2 per co-working desk in the city.
Thomas Hui, CEO of co-working space operator theDesk, said the premium rates that companies charge in the city are reasonable because they lease space in the world’s most expensive office space.
“I think the trend will continue to move upward especially in prime business locations as office rents in the city are also going to increase further,” he said.