Beijing ($45/sqft, 18.5% vacancy) and Hong Kong ($186/sqft, 12.8% vacancy) compete on different axes: Beijing on talent depth and Hong Kong on rent and tax.
Beijing ($45/sqft, 18.5% vacancy) and Hong Kong ($186/sqft, 12.8% vacancy) compete on different axes: Beijing on talent depth and Hong Kong on rent and tax.
| Metric | Beijing | Hong Kong |
|---|---|---|
| Region | APAC | APAC |
| Country | China | Hong Kong SAR |
| Class A rent (USD/sqft/yr) | $45 | $186 |
| Class A rent (local) | 320 CNY | 1450 HKD |
| Vacancy | 18.5% | 12.8% |
| Trend | softening | softening |
| Prime yield | 5.6% | 3.4% |
| Premium flex / seat / month (USD) | $580 | $1,320 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25% | 16.5% |
| Metric | Beijing | Hong Kong |
|---|---|---|
| Typical term | 5 yrs | 3 yrs |
| Typical rent-free | 8 mos | 8 mos |
| Lease norms | Net leases. 5-7 year terms standard. Free rent of 6-12 months and TI of CNY 1,000-2,000/sqm typical on a 5-year Class A deal. | Hong Kong leases are typically 3 years (with renewal option) or 6 years on the trophy tier. Rent-free of 6-12 months on a 3-year term is current market. Rent is gross with management fees billed separately. Stamp duty is payable on lease execution. Bank guarantees of 3 months are standard. |
| Tax note | 25% standard Chinese corporate income tax. 15% reduced rate for High and New Technology Enterprises (HNTE). Beijing offers tech-sector subsidies in Zhongguancun and the Beijing Free Trade Zone. | Profits tax at 16.5% (8.25% on the first HKD 2 million for qualifying entities). No VAT, no capital gains tax, no withholding tax on dividends. |
| Metric | Beijing | Hong Kong |
|---|---|---|
| Talent index (0–100) | 90 | 88 |
| Talent note | Deepest tech, finance, and government affairs talent in China. Strong feed from Tsinghua, Peking University, Renmin University, and a deep network of T-1 universities. Mandarin-only operating environment for most domestic tenants. | Premium financial-services talent depth, particularly for cross-border China-mainland mandates. Average all-in compensation indexes 88 vs. New York's 100. |
Beijing: Beijing Subway (27+ lines, the world's largest by length). Beijing Capital Airport (PEK) and Daxing Airport (PKX) both rail-served. CBD walking access from multiple subway interchanges.
Hong Kong: MTR coverage across the entire Class A footprint. Airport Express to Chek Lap Kok in 24 minutes from Central. The Hong Kong-Zhuhai-Macau Bridge and Express Rail to Shenzhen and Guangzhou support cross-border occupier strategies.
Beijing is the cheaper Class A market on a USD basis.
Beijing has the deeper talent index (90/100 vs 88/100).
Hong Kong has the lower headline corporate tax (16.5% vs 25%). Local incentives can change the effective rate materially.
Beijing typical term is 5 years with 8 months free; Hong Kong runs 3 years with 8 months free.
Beijing: Beijing Subway (27+ lines, the world's largest by length). Beijing Capital Airport (PEK) and Daxing Airport (PKX) both rail-served. CBD walking access from multiple subway interchanges. Hong Kong: MTR coverage across the entire Class A footprint. Airport Express to Chek Lap Kok in 24 minutes from Central. The Hong Kong-Zhuhai-Macau Bridge and Express Rail to Shenzhen and Guangzhou support cross-border occupier strategies.
Score Beijing, Hong Kong and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.