Hong Kong banks lose appetite for prime space in world’s costliest city as work-from-home becomes permanent after pandemic
- Financial companies account for 73 per cent of grade A office space in Central
- From 2021, Standard Chartered will allow employees in Hong Kong to apply for flexi-work arrangements
Demand for Hong Kong’s prime office space is likely to fall as some of the city’s biggest banks, including Standard Chartered and HSBC, are considering more flexible working arrangements after their success during the coronavirus pandemic, according to market observers.
Financial companies are some of the biggest commercial renters in Hong Kong, accounting for 73 per cent of the grade A office space in Central, according to third-quarter data from Knight Frank.
And vacancy rates are rising, likely to exceed 10 per cent in core areas of Hong Kong Island by the end of the year, according to Centaline Commercial.
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“While we have been thinking through the issues around future workplaces for some time, it’s inevitable that recent events provided a catalyst,” said Tanuj Kapilashrami, group head of human resources at Standard Chartered.
