A Savills research report in 2015 revealed that Hong Kong is the world’s second most expensive city for businesses to locate their employees. Despite dropping by more than 2% in cost from H2 2014, the city was more expensive than New York in third place, but ranked behind London, with a live/work cost of US$113,019.
In all three cities, the provision of office and living space now costs more than US$110,000 per employee every year. While London is the most expensive at US$118,085 per year, this is still some way off the record US$128,000 per year set by Hong Kong in 2011.
The Savills Live/Work Index has been dominated by London, Hong Kong and New York since it was launched in 2008. Accompanying Hong Kong’s drop in cost from 2H/2014 was London (-7.3%), while New York rose by 1.1%.
In general, a strong economic recovery and rising commercial and residential rents are combining with the strong dollar to make North American cities increasingly expensive. San Francisco, in fifth position, has shown the biggest increase, with growth in rent and other real estate costs up 4.8% since 2014, and 55.1% since 2008.
Asia-Pacific cities in the top ten include Singapore in sixth position, Tokyo ranking seventh, and Sydney in ninth place.