Rising Hong Kong rents force consulates to relocate

Rising Hong Kong rents force consulates to relocateHong Kong  - Rising office rents are forcing consulates to either downsize or relocate to cheaper areas in the territory, a media report said Monday.

The Polish consulate, faced with a 250 per cent increase in rent, has already moved from the upmarket Pacific Place office complex in the Admiralty district to the less salubrious adjacent district of Wan Chai, the South China Morning Post said.

Commenting on the massive increase imposed by the consulate's landlord, Poland's consul general Ryszard Jacek Potocki told the newspaper. "I thought it was immoral and personally decided to leave the place."

The Japanese consulate is also mulling plans to reduce the size of its office and move from the two floors it leases in One Exchange Square, an office complex that fronts Hong Kong's Victoria harbour.

"Hong Kong's real estate prices are rising rapidly," an unnamed consular official said, who added that the decision to reduce space "is not final, but it's very likely."

The Austrian consulate is set to move from its office in the central business district to a cheaper location when the lease expires next year.

This comes as a local estate agent said office rents have surged more than 70 per cent in the past year.

Pierre Wong, chief executive of Midland Realty's investment, commercial and industrial department, said: "The rent in Hong Kong is not extreme if compared with that of London and New York, but other than consulates, many companies have chosen to move to cheaper locations. They can't afford their existing offices but they can certainly afford moving to an area further from the central business district." (dpa)

Business News: 
Regions: