Hong Kong ($186/sqft, 12.8% vacancy) and Manila ($26/sqft, 22.6% vacancy) compete on different axes: Hong Kong on talent depth and Manila on rent and tax.
Hong Kong ($186/sqft, 12.8% vacancy) and Manila ($26/sqft, 22.6% vacancy) compete on different axes: Hong Kong on talent depth and Manila on rent and tax.
| Metric | Hong Kong | Manila |
|---|---|---|
| Region | APAC | APAC |
| Country | Hong Kong SAR | Philippines |
| Class A rent (USD/sqft/yr) | $186 | $26 |
| Class A rent (local) | 1450 HKD | 1500 PHP |
| Vacancy | 12.8% | 22.6% |
| Trend | softening | softening |
| Prime yield | 3.4% | 6.6% |
| Premium flex / seat / month (USD) | $1,320 | $290 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 16.5% | 25% |
| Metric | Hong Kong | Manila |
|---|---|---|
| Typical term | 3 yrs | 3 yrs |
| Typical rent-free | 8 mos | 5 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. | Net leases. 3-5 year terms with renewal options standard. Free rent of 4-9 months on a 5-year deal. |
| 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. | 25% Philippine corporate income tax. 20% reduced rate for small companies. PEZA registration provides 4-7 year income tax holiday plus 5% gross income tax in lieu of all national and local taxes for qualifying export-oriented activities. |
| Metric | Hong Kong | Manila |
|---|---|---|
| Talent index (0–100) | 88 | 76 |
| 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. | Deepest English-language BPO talent in Asia. Strong feed from University of the Philippines, Ateneo de Manila, De La Salle, and a deep network of universities. Excellent neutral English accent supports North American customer-facing operations. |
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.
Manila: LRT-1, LRT-2, MRT-3, plus the new MRT-7 and PNR. Manila Metro Rail Transit System (MMRT) is structurally under-capacity. NAIA airport connected via bus and the future MRT-7 extension.
Manila is the cheaper Class A market on a USD basis.
Hong Kong has the deeper talent index (88/100 vs 76/100).
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; Manila runs 3 years with 5 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. Manila: LRT-1, LRT-2, MRT-3, plus the new MRT-7 and PNR. Manila Metro Rail Transit System (MMRT) is structurally under-capacity. NAIA airport connected via bus and the future MRT-7 extension.
Score Hong Kong, Manila 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.