Hong Kong ($186/sqft, 12.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Hong Kong on talent depth and Tokyo on rent and tax.
Hong Kong ($186/sqft, 12.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Hong Kong on talent depth and Tokyo on rent and tax.
| Metric | Hong Kong | Tokyo |
|---|---|---|
| Region | APAC | APAC |
| Country | Hong Kong SAR | Japan |
| Class A rent (USD/sqft/yr) | $186 | $113 |
| Class A rent (local) | 1450 HKD | 50000 JPY |
| Vacancy | 12.8% | 4.6% |
| Trend | softening | rising |
| Prime yield | 3.4% | 3% |
| Premium flex / seat / month (USD) | $1,320 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 16.5% | 30.6% |
| Metric | Hong Kong | Tokyo |
|---|---|---|
| Typical term | 3 yrs | 5 yrs |
| Typical rent-free | 8 mos | 4 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. | Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply. |
| 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. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Hong Kong | Tokyo |
|---|---|---|
| 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. | The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium. |
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.
Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Tokyo 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 30.6%). Local incentives can change the effective rate materially.
Hong Kong typical term is 3 years with 8 months free; Tokyo runs 5 years with 4 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. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Score Hong Kong, Tokyo 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.