Real estate in Hong Kong is exorbitantly expensive when compared to other similar cities in the world. And under the current challenging economic times and market volatility, some companies operating in Hong Kong are buckling under high office rental cost. The influx of companies from People’s Republic of China exacerbate the rent situation. The Chinese companies are taking up a large chunk of the lettings by floor area in Financial District and Central Hong Kong. These new entrants are jacking up the rental price, forcing many companies who cannot afford high cost of rental spaces to seek alternatives; They are either renting offices in coworking spaces or moving out of the Financial District to the city fringe where rental cost is affordable.
On the back of all these, there is a rising number of enterprising young people try to get started running their own businesses in Hong Kong. For them, the cost of office rental is a huge dent on their lean financial base. This is hardly a cost they can bear. This is particularly true for startups, entrepreneurs and small team companies. The coworking space Hong Kong are cutting down rental cost for startups, entrepreneurs and small team companies alike through cost sharing. Take for example, a startup wanting to have an office space in the prohibitively expensive Financial District, Wan Chai, Sheung Wan, or Kennedy Town, can rent a flexible work space at a relatively affordable price from coworking space hk companies. In these coworking spaces, startups, entrepreneurs and small companies generally share space to cut cost and save on overheard.