Iconic Wong Chuk Hang on the Rise as a Business Hub with Cheaper Rents

Many international finance institutes are looking to move away from the old areas in search of larger, cheaper office space within the city main business district. Wong Chuk Hang in Hong Kong Island fits the bill perfectly and has become an attraction point for many businesses looking to cut on their operational expenses. Even with the rent for quality grade offices in Central Business district approaching record highs, a number of blue-chip corporate tenants are headed for the former district south of Hong Kong island. Currently, the rent there is close to a third of what is charged in central, according to district sales director and property broker James Mak. This transition is expected to accelerate growth for the big names and insurer Axa together with CNN are among the top companies who have already moved in. KPMG is set to play a huge role in this transition with a 28-story building that can easily hold up to 3000 people. However, they are hesitant to give feedback on the lease although reports indicate they had signed a lease with Hysanplace in 2011.

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When going to a new place means saving on rent, then the answer is quite obvious, not forgetting that the office buildings are still fresh and have good facilities. Figures by JLL show that the mean rent for a grade A building in the island is $32.8 as compared to that in central which is in excess of 3 times higher. This hugely influences the moves by companies to the newer offices that are cheaper to rent and a little distance away from the city. In terms of strategic positioning, the companies that are finding it too expensive for them to continue staying in the middle of the city are finding greener pastures at a cheaper rate on the Island. It is expected to change the general trend of things as business change their direction as they seek to maximize on their returns without their expenses and maintenance costs getting too high. Holding company workers in one large office at a reduced rate gets the company better returns on their investments which in turn leads to better pay packages for these workers.

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The new, more affordable buildings in play are still recently new and good looking which is a reason a lot of IT firms have been attracted to move into the new accommodation spaces. It also means that workers will be freed up from the stress and worries of having to head right into the center of town every morning in order to work. Instead, they will be traveling a much shorter distance as they head to work and this also tends to have them on expenses and operational costs which leads to a company growth. Moving to the top grade buildings on the famous Island for companies like CNN means more peaceful working conditions and a generally productive staff. As potential clients get attracted to the new working environment, so will the place grow and this is expected to overhaul the economy of that area by a huge margin.