Melbourne ($468/sqft, 18.4% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Melbourne on talent depth and Shanghai on rent and tax.
Melbourne ($468/sqft, 18.4% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Melbourne on talent depth and Shanghai on rent and tax.
| Metric | Melbourne | Shanghai |
|---|---|---|
| Region | APAC | APAC |
| Country | Australia | China |
| Class A rent (USD/sqft/yr) | $468 | $122 |
| Class A rent (local) | 720 AUD | 880 CNY |
| Vacancy | 18.4% | 19.8% |
| Trend | softening | softening |
| Prime yield | 5.4% | 4.4% |
| Premium flex / seat / month (USD) | $720 | $740 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 30% | 25% |
| Metric | Melbourne | Shanghai |
|---|---|---|
| Typical term | 7 yrs | 3 yrs |
| Typical rent-free | 14 mos | 8 mos |
| Lease norms | 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. | 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 | 30% Australian corporate tax (25% for base rate entities). Victorian state payroll tax of 4.85-6.85%. R&D tax incentive available federally. | Headline corporate tax 25% (15% for High and New Technology Enterprises). Free Trade Zone advantages exist. |
| Metric | Melbourne | Shanghai |
|---|---|---|
| Talent index (0–100) | 84 | 76 |
| Talent note | Deep professional services, banking, education, and creative talent. Strong feed from University of Melbourne, Monash, and RMIT. English-fluent professional base; multicultural workforce. | Mainland China's deepest financial-services and tech talent pool. Average all-in compensation indexes 76. |
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.
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.
Melbourne has the deeper talent index (84/100 vs 76/100).
Shanghai has the lower headline corporate tax (25% vs 30%). Local incentives can change the effective rate materially.
Melbourne typical term is 7 years with 14 months free; Shanghai runs 3 years with 8 months free.
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. Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Score Melbourne, 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.