Hong Kong ($186/sqft, 12.8% vacancy) and Melbourne ($468/sqft, 18.4% vacancy) compete on different axes: Hong Kong on talent depth and Melbourne on rent and tax.
Hong Kong ($186/sqft, 12.8% vacancy) and Melbourne ($468/sqft, 18.4% vacancy) compete on different axes: Hong Kong on talent depth and Melbourne on rent and tax.
| Metric | Hong Kong | Melbourne |
|---|---|---|
| Region | APAC | APAC |
| Country | Hong Kong SAR | Australia |
| Class A rent (USD/sqft/yr) | $186 | $468 |
| Class A rent (local) | 1450 HKD | 720 AUD |
| Vacancy | 12.8% | 18.4% |
| Trend | softening | softening |
| Prime yield | 3.4% | 5.4% |
| Premium flex / seat / month (USD) | $1,320 | $720 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 16.5% | 30% |
| Metric | Hong Kong | Melbourne |
|---|---|---|
| Typical term | 3 yrs | 7 yrs |
| Typical rent-free | 8 mos | 14 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. 7-10 year terms standard. Incentives of 30-45% (combination of free rent, fitout, and rent abatement) typical on a 10-year Class A 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. | 30% Australian corporate tax (25% for base rate entities). Victorian state payroll tax of 4.85-6.85%. R&D tax incentive available federally. |
| Metric | Hong Kong | Melbourne |
|---|---|---|
| Talent index (0–100) | 88 | 84 |
| 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. | Deep professional services, banking, education, and creative talent. Strong feed from University of Melbourne, Monash, and RMIT. English-fluent professional base; multicultural workforce. |
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.
Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD.
Hong Kong is the cheaper Class A market on a USD basis.
Hong Kong has the deeper talent index (88/100 vs 84/100).
Hong Kong has the lower headline corporate tax (16.5% vs 30%). Local incentives can change the effective rate materially.
Hong Kong typical term is 3 years with 8 months free; Melbourne runs 7 years with 14 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. Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD.
Score Hong Kong, Melbourne 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.