TL;DR
- Lease lengths vary materially: 3 years (Hong Kong, Shanghai, Dubai) to 7+ (Tokyo, Sydney).
- Reinstatement obligations are a major hidden cost in Singapore, Tokyo, and Hong Kong — budget early.
- Australia uniquely separates face rent from effective rent; gross-vs-net is a non-issue.
- Stamp duty applies on lease execution in HK, Singapore, India.
- Bank guarantees and large deposits are standard across APAC; pure security deposits less common.
Lease length norms
**Singapore.** 3-5 years standard. **Hong Kong.** 3 years (with renewal option) for most Grade A; 6 years on the trophy tier. **Tokyo.** 5-7 years; fixed-term (teiki shakuya) is increasingly common for trophy assets. **Sydney.** 5-10 years with a 30-40% incentive package. **Shanghai.** 3 years with renewal option. **Seoul.** 5 years (often 3+2). **Mumbai.** 5-9 years (often 3+2 or 5+5). **Dubai.** 3 years with annual escalators.
Reinstatement: the hidden cost
Most APAC leases require the tenant to **reinstate** the premises to bare-shell or original condition at lease end. This is contractual and the dollar figure can be substantial: - **Singapore:** SGD 30-60/sqft on a high-end fit-out. - **Hong Kong:** HKD 200-400/sqft on a high-end fit-out. - **Tokyo:** JPY 30-60k/sqm (genjo kaifuku). - **Shanghai:** CNY 200-400/sqm. Provision for reinstatement from year one of the term. Some tenants negotiate to leave the existing fit-out — landlords may agree if the spec is broadly reusable.
Australia's face vs effective rent
Australian commercial leases distinguish between **face rent** (the headline gross figure) and **effective rent** (face minus the value of the incentive package). Incentives in Sydney are now standardly 30-40% — a face rent of AUD 1,500 psm yields an effective rent of AUD 900-1,050. This is unique to Australia in scale; New Zealand follows a similar convention. When comparing Australian deals, only effective rent is meaningful. When comparing Australia to other markets, normalise to effective.
Stamp duty and registration
Lease execution triggers stamp duty in: Hong Kong (around 0.5% of total rent), Singapore (0.4% of total rent), India (variable by state — 0.5-2% in Maharashtra). Plan for it in the closing budget. Dubai requires Ejari registration of the lease (a small administrative fee). Tokyo leases are not stamp-dutied at federal level but registration with the Legal Affairs Bureau is recommended for security.