Hong Kong ($186/sqft, 12.8% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Hong Kong on rent and tax and London on talent depth.
Hong Kong ($186/sqft, 12.8% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Hong Kong on rent and tax and London on talent depth.
| Metric | Hong Kong | London |
|---|---|---|
| Region | APAC | EMEA |
| Country | Hong Kong SAR | United Kingdom |
| Class A rent (USD/sqft/yr) | $186 | $121 |
| Class A rent (local) | 1450 HKD | 95 GBP |
| Vacancy | 12.8% | 8.6% |
| Trend | softening | rising |
| Prime yield | 3.4% | 4.5% |
| Premium flex / seat / month (USD) | $1,320 | $1,380 |
| Submarkets covered | 5 | 7 |
| Corporate tax | 16.5% | 25% |
| Metric | Hong Kong | London |
|---|---|---|
| Typical term | 3 yrs | 10 yrs |
| Typical rent-free | 8 mos | 24 mos |
| Lease norms | 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. | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. |
| Tax note | 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. | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. |
| Metric | Hong Kong | London |
|---|---|---|
| Talent index (0–100) | 88 | 96 |
| Talent note | Premium financial-services talent depth, particularly for cross-border China-mainland mandates. Average all-in compensation indexes 88 vs. New York's 100. | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. |
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.
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
London is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 88/100).
Hong Kong has the lower headline corporate tax (16.5% vs 25%). Local incentives can change the effective rate materially.
Hong Kong typical term is 3 years with 8 months free; London runs 10 years with 24 months free.
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. London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
Score Hong Kong, London 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.