APAC lease conventions vary widely by market — Tokyo gross-rent in tsubo, Singapore service-charge net, Hong Kong gross-floor-area, India carpet-area-with-loading — and translation to US/UK norms must precede signing on any cross-border deal.
Tokyo: rent quoted per tsubo per month, gross of opex.
Singapore: service charge separate from rent; lease terms 2–3 years standard.
Hong Kong: rent on gross floor area; deposit typically 3 months.
Seoul: deposit (key money) often 10× monthly rent.
Sydney/Melbourne: net lease, NABERS-rated buildings standard.
APAC Lease Conventions
APAC lease conventions vary widely by market — Tokyo gross-rent in tsubo, Singapore service-charge net, Hong Kong gross-floor-area, India carpet-area-with-loading — and translation to US/UK norms must precede signing on any cross-border deal.
TL;DR
Tokyo: rent quoted per tsubo per month, gross of opex.
Singapore: service charge separate from rent; lease terms 2–3 years standard.
Hong Kong: rent on gross floor area; deposit typically 3 months.
Seoul: deposit (key money) often 10× monthly rent.
Sydney/Melbourne: net lease, NABERS-rated buildings standard.
What this is
APAC lease conventions are heterogeneous — each major market (Tokyo, Singapore, Hong Kong, Seoul, Mumbai, Delhi, Bangalore, Shanghai, Sydney) operates a distinct lease regime with different rent quotation conventions, area measurement standards, deposit structures, and renewal mechanics. For a cross-border occupier, accurate translation to US/UK norms (and to per-seat per-month USD) is the first analytical step on any APAC deal.
Tokyo: tsubo and gross
Tokyo office leases quote rent per tsubo (3.305 m² ≈ 35.6 sf) per month, gross of opex (utilities and management fees often separate). Default lease term is 2–3 years with a 'fixed-term lease' (teiki shakuya) increasingly common for new builds. Deposit is typically 6–12 months' rent. Restoration (genjō kaifuku) at lease end is more onerous than US restoration — the tenant typically returns the space to bare shell condition.
Singapore: service charge separation
Singapore quotes rent per sqft per month, with service charge separate (typically SGD 1.20–1.80/sf/month). Lease terms are 2–3 years with one renewal option; longer terms (5+ years) are rare. Deposit is typically 3 months' rent + service charge + GST. Stamp duty applies to the lease (BSD on 'ad valorem' basis).
Hong Kong: gross floor area
Hong Kong rent is quoted per sqft per month on gross floor area (GFA), which includes a substantial common-area allocation (loading factor of 25–35%). Useable floor area (UFA) is smaller; convert GFA rent to UFA to compare with US/UK norms. Lease terms are 2–3 years standard, with a deposit of 3 months' rent. Government rates and government rent are separate small line items.
Indian markets: carpet area and loading
Mumbai, Delhi NCR, Bangalore, Hyderabad, Pune — Indian Class A leases quote on chargeable area (super-built-up area), with rent per sqft per month. Loading factor (chargeable / carpet) runs 30–35%. Standard lease term is 5+5 years with a 9–12 month lock-in; the lock-in is heavily negotiated and rare in trophy assets. Deposit is typically 6–12 months' rent. Service tax / GST applies (currently 18%).
Seoul: key money
Seoul leases use a 'jeonse' or hybrid 'wolse + bojeunggeum' structure — large deposit (key money, often 10× monthly rent or more) plus monthly rent. The deposit returns at lease end. Lease terms are 2 years standard. Service charges are quoted separately. Trophy/prime-tier institutional landlords increasingly accept Western-style deposits (3–6 months) for international tenants.
Shanghai and Beijing: VAT and registration
Chinese mainland office leases quote per m² per day (RMB), with service charge separate. Lease terms are 3–5 years with renewal rights. Deposit is typically 3 months' rent + service charge. VAT applies (currently 9%). Lease registration with the local housing bureau is required and can take 2–6 weeks.
Australia: NABERS and net leases
Sydney and Melbourne quote rent per m² per year, with separate outgoings (operating expenses) on a net-lease basis. Lease terms are 5–10 years with options. NABERS energy ratings are now standard at trophy/prime tier (4.5–6 star); below 4.5 star is increasingly hard to lease to institutional tenants. Make-good obligations at lease end are substantial — negotiate the standard early.
Decision aid
If you are signing in any APAC market: translate the rent to per-seat per-month USD before signing, model deposit cash-flow impact (especially Korea key money and Indian 6–12 month deposits), diligence the make-good / restoration standard, and engage local counsel on registration, VAT/GST, and stamp duty.
Frequently asked questions
What is a tsubo?
Japanese unit of floor area, ~3.305 m² or ~35.6 sf. Tokyo office rents are quoted per tsubo per month.
What is loading factor in India?
The ratio of chargeable area to carpet area — typically 30–35% in Indian Class A. Rent is quoted on chargeable area.
Why is Korean key money so high?
Cultural and legal convention. Trophy international tenants increasingly negotiate Western-style 3–6 month deposits.
Are APAC lease terms shorter than US/UK?
Yes — 2–3 years is standard in Tokyo, Singapore, Hong Kong, Seoul. India is 5+5 with lock-in. Australia is 5–10 years.
Do I need local counsel?
Yes, on every APAC deal. Registration, VAT/GST, stamp duty, and restoration standards vary materially.