Hong Kong ($186/sqft, 12.8% vacancy) and Sydney ($96/sqft, 12.6% vacancy) compete on different axes: Hong Kong on talent depth and Sydney on rent and tax.
Hong Kong ($186/sqft, 12.8% vacancy) and Sydney ($96/sqft, 12.6% vacancy) compete on different axes: Hong Kong on talent depth and Sydney on rent and tax.
| Metric | Hong Kong | Sydney |
|---|---|---|
| Region | APAC | APAC |
| Country | Hong Kong SAR | Australia |
| Class A rent (USD/sqft/yr) | $186 | $96 |
| Class A rent (local) | 1450 HKD | 1480 AUD |
| Vacancy | 12.8% | 12.6% |
| Trend | softening | flat |
| Prime yield | 3.4% | 5.5% |
| Premium flex / seat / month (USD) | $1,320 | $990 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 16.5% | 30% |
| Metric | Hong Kong | Sydney |
|---|---|---|
| Typical term | 3 yrs | 7 yrs |
| Typical rent-free | 8 mos | 30 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 5-10 year lease. Gross or net structure (both common). Australian leases distinguish 'face rent' (headline) from 'effective rent' (face minus incentive). Incentives of 30-40% are now standard — typically structured as rent abatement, fit-out contribution, or both. |
| 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. | Federal corporate tax 30%. NSW payroll tax applies. No state corporate income tax. |
| Metric | Hong Kong | Sydney |
|---|---|---|
| Talent index (0–100) | 88 | 85 |
| 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. | Australia's deepest financial-services, technology, and professional-services talent pool. Average all-in compensation indexes 85. |
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.
Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity.
Sydney is the cheaper Class A market on a USD basis.
Hong Kong has the deeper talent index (88/100 vs 85/100).
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; Sydney runs 7 years with 30 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. Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity.
Score Hong Kong, Sydney 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.