Hong Kong ($186/sqft, 12.8% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Hong Kong on talent depth and Shanghai on rent and tax.
Hong Kong ($186/sqft, 12.8% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Hong Kong on talent depth and Shanghai on rent and tax.
| Metric | Hong Kong | Shanghai |
|---|---|---|
| Region | APAC | APAC |
| Country | Hong Kong SAR | China |
| Class A rent (USD/sqft/yr) | $186 | $122 |
| Class A rent (local) | 1450 HKD | 880 CNY |
| Vacancy | 12.8% | 19.8% |
| Trend | softening | softening |
| Prime yield | 3.4% | 4.4% |
| Premium flex / seat / month (USD) | $1,320 | $740 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 16.5% | 25% |
| Metric | Hong Kong | Shanghai |
|---|---|---|
| Typical term | 3 yrs | 3 yrs |
| Typical rent-free | 8 mos | 8 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. | Standard 3-year lease with renewal option. Rent gross of management fees but exclusive of utilities. Bank guarantee or rent deposit of 3-6 months standard. Reinstatement at lease-end is contractual. |
| 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. | Headline corporate tax 25% (15% for High and New Technology Enterprises). Free Trade Zone advantages exist. |
| Metric | Hong Kong | Shanghai |
|---|---|---|
| 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. | Mainland China's deepest financial-services and tech talent pool. Average all-in compensation indexes 76. |
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.
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Shanghai 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; Shanghai runs 3 years with 8 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. Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Score Hong Kong, Shanghai 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.