Hong Kong Ranks As Most Expensive City To Set Up Business

 

Hong Kong's development as a global financial centre has contributed to the city becoming the most expensive place in the world to rent commercial or residential property, new research from global real estate advisor Savills has found.

Savills' World Cities Review ranked the expenses for renting property in the world's ten leading cities in the first half of 2013. The report found that New York was the second most expensive city, overtaking London and pushing it down to number three.

At the other end of the scale, Sydney, Shanghai and Mumbai were the least expensive in terms of total base costs. Setting up a business in Mumbai would cost just a quarter of the expenses in Hong Kong.

Overall, costs dipped slightly by 0.05% across the ten cities examined. Savills calculated the total cost for commercial  and household rental for a 14-person team, would be $1.63 million (just over £1 million) per year for accommodation in Hong Kong, $1.55 million (£965,000) for relocating to New York and $1.53 million (£952,000) to move to London.

The remaining cities included in the survey were Paris, at number four, Tokyo, occupying fifth position, and Singapore and Moscow, ranking at numbers six and seven, respectively.

However, Singapore provides businesses with the best value for money, the research showed. For this metric, Savills measured accommodation costs against GDP per capita in the city. In the best-value-for-money chart, Singapore was followed by Sydney, Moscow, New York, Paris, Tokyo, London, Shanghai, Hong Kong and Mumbai.

 

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