Hong Kong versus Singapore: CBRE study reveals business hubs’ strengthsHong Kong remains an attractive business hub thanks to its financial prowess, vast talent pool and ample supply of office space, according to a new study released by property consultancy CBRE. Singapore can count plenty of advantages too, including the scale of its technology industry, as well as initiatives and green building efforts when it comes to environmental, social and governance (ESG) initiatives.The analysis of the two influential cities rated Hong Kong higher across seven broad categories, while two were deemed too close to call. This was primarily due to Hong Kong’s financial industry, talent pool and office space. One standout statistic revealed that Hong Kong is the largest private wealth management center and is tipped to surpass Switzerland in 2026.

Aside from this, the study confirmed that Singapore’s economy is more diversified than Hong Kong’s and it plays a more significant role in connecting to the fast-growing economies of Southeast Asia. Additionally, Singaporeans invested almost 2% of their economic output in research and development, whereas Hong Kong contributed just 1%.

When it came to foreign workers, Singapore attracted more talent in 2021, yet the number of foreign workers remained below pre-pandemic levels. Meanwhile, Hong Kong recorded a 5% decline, although an 18% increase in the number of mainland firms in the city balanced this out. CBRE believes that the competition between the two cities for skilled workers is likely to intensify due to both having new visa programmes.

J’den Condo is a 40-storey residential and commercial development to be located near Jurong East MRT Station in Singapore, expected to be launched in 2023. It will include J’Den Condo commercial space and be a part of the Jurong Lake District redevelopment.

The two cities’ office rental markets also demonstrated some convergence. Singapore’s rents have increased 43% over the past three years, while Hong Kong recently experienced its biggest drop in ten years with a surge in available office space likely to further weigh on rents. That said, Singapore appears to remain the destination of choice for global tech companies, although higher living costs may dissuade some talent from relocating there.

When it comes to commercial property investments, Singapore maintains higher stability and returns, which is attractive to many investors. Hong Kong, however, offers discounted office assets which can create favourable prospects for value-oriented investors. With the competition between the two cities intensifying, CBRE said that corporate occupiers should act quickly in Hong Kong to secure advantageous terms while the market remains in their favour.