5. Choosing business premises
Hong Kong has a wide variety of
business premises even within a close distance from its CBD. While property
prices in the premium “Central” location can be very high, Hong Kong’s compactness
and excellent transport system mean that good-value sites can be found within
short travelling distance of the CBD. The central corridor on Hong Kong Island
extends from Sheung Wan in the west to Quarry Bay in the east, whilst
accommodation is generally cheaper on Kowloon (across the harbour).
Office searches are normally
arranged through an agent and procedures are straightforward. Renovations and
refurbishment can be carried out quickly and economically.
Leased offices are typically rented for two or three years with an option
to renew. A tenancy agreement covers the respective duties and obligations of
landlord and tenant; a cash security deposit equivalent to up to three months
rent, inclusive of service charge and government rates, is normally required
from the tenant. Other office rental costs may include: a one-off fee to the
property agent (normally equivalent to a month’s rent shared between landlord
and tenant); management service charges, which typically covers air
conditioning, security, common areas, cleaning and other building services; government
rates at five percent of annual rental value, payable quarterly in advance; and
legal fees, should you engage a lawyer to process the tenancy agreement (many
people do not).
