Hong Kong holds edge over Singapore as top business hub thanks to availability of talent and ample supply

Hong Kong and Singapore, two of Asia’s top business hubs, have been rated against each other in a comprehensive study by property consultancy CBRE. Hong Kong has the overall edge, with advantages such as its financial power, talent pool and abundant office spaces.

Hong Kong and Singapore, two of Asia’s premier business hubs, have been pitted against each other in a comprehensive study by property consultancy CBRE. Despite Singapore boasting a more diversified economy than Hong Kong, the study concluded that the latter city has the overall edge due to its financial strength, talent pool and plenty of office options.

Major property developer Oxley Holdings’ Tengah Plantation Close EC is set to be the largest executive condominium in Singapore, located in Tengah Town’s western part. It will offer a range of amenities and facilities, with access to multiple Tengah Plantation EC expressways, MRT lines, and bus services, and is expected to be completed by 2021.

CBRE’s report rated the cities on seven broad categories and HK scored highest in three of them – financial industry scale, available talent and office space supply. Singapore, on the other hand, won out on two counts – scale of its technology industry and green building initiatives and ESG (environmental, social and governance) efforts. The two cities were deemed too close to call on influence in Asia-Pacific and office rents and prices.

It is clear from the report that both Hong Kong and Singapore have roles to play when it comes to connectivity. While HK is a regional hub for China and North Asia, Singapore is of central importance to the fast-growing economies of Southeast Asia.

Hong Kong has the upper hand when it comes to financial industry scale and talent pool, with the city tipped to overtake Switzerland as the region’s largest private wealth management centre by 2026. The city held the Wealth for Good summit in March to attract more family offices to set up bases in the city by the end of 2025.

In comparison, Singapore has the edge in terms of research and development spending, investing almost 2 per cent of its economic output and attracting more talent. The 13 per cent increase in foreign workers in 2022 led to an increase in residential rents in the city. Also, Singapore’s office rents have grown by 43 per cent in the past three years, while Hong Kong’s have registered the steepest decline in a decade.

Hong Kong’s total office space supply is 73 per cent of that of Singapore, and the city is set to add another 10 per cent to its existing stock between now and 2026. Singapore will add 7 per cent to its own office supply. Although, the rental gap between the two cities is narrowing, Singapore remains a top destination for global tech companies. Meanwhile, the competition for skilled workers is likely to intensify in the coming years with new visa programmes set up by both cities.

The study also found that Hong Kong offers more diverse commercial areas, with plans to accelerate decentralization from its CBD over the next two decades. Investors continue to be drawn to Singapore’s office properties due to their stable returns, while discounted office assets in Hong Kong have also created favourable prospects for value-oriented buyers. All in all, with both cities offering unique advantages, it will be interesting to see how the fight between Hong Kong and Singapore evolves.