Setting up an Office in the Asia-Pacific Region: A Cost Comparison of Six Cities
Nov 01, 2017
Choosing an office location can be a messy, complicated process. There are numerous factors to consider, including international accessibility, infrastructure, the local labor pool, and taxes. While many of these considerations are determined by the personal needs of the business, all businesses have one common goal when selecting a space: affordable overhead.
But finding up-to-date information on costs can be difficult, especially when dealing with overseas locations. For companies looking to open an office in the Asia-Pacific region, JETRO has you covered. Here is a breakdown of basic office overhead costs for six of Asia’s biggest cities. To keep things fair, all rates assume an office occupancy of fewer than 50 people. Price per square foot looks specifically at the financial districts for each city.
Comparsions cover office cost per square foot, monthly utilities, and phone plans.
Office Space by Cost Per Square Foot (Most Expensive to Least)
No. 1: Hong Kong
Average price per square foot: $264
District: Central Business District
No. 2: Beijing, China
Average price per square foot: $179
District: Finance Street
No. 3: Tokyo, Japan
Average price per square foot: $127
District: Marunouchi/Otemachi
No. 4: Shanghai, China
Average price per square foot: $117
District: Pudong
No. 5: Seoul, South Korea
Average price per square foot: $68
District: Central Business District
No. 6: Singapore
Average price per square foot: $65
District: N/A
Office Space by Utilities Cost (Most Expensive to Least)
No. 1: Tokyo, Japan
Electricity: Base charge: $14/month; $0.10-0.20/1kWh
Water: Base charge: $3.25-255/month; $0.20-0.60/1m3
Gas: Base charge: $11/month; $0.75-8.15/1m3
No. 2: Singapore
Electricity: Base charge: contract amount x 6.24/kW*; $0.05-0.15/1kWh
Water: Base charge: $2.05; $1.60/1m3
Gas: $0.10-0.15/1kWh
*The contract amount is determined when a company sets a cap amount of electricity spend per monthly period. Even if the company does not spend their cap amount, they will be charged a monthly base charge based on the cap number.
No. 3: Hong Kong
Electricity: Base charge: $4.15-4.65/month; $0.10-0.20/1kWh
Water: $0.50-1.50/1m3
Gas: Base charge: $2.60/month; $0.03-0.035/1m3
No. 4: Seoul, South Korea
Electricity: Base charge: $4.65-5.20/month; $0.05-0.10/1kWh
Water: Base charge: $0.45-0.70/month; $0.70-1.5/1m3
Gas: $0.010-0.015/1m3
No. 5: Beijing, China
Electricity: $0.10/1kWh
Water: $1.00-1.50/1m3
Gas: $0.40-0.50/1m3
No. 6: Shanghai, China
Electricity: $0.10-0.15/1kwH
Water: $0.70-0.75/1m3
Gas: $0.50-0.60/1m3
Office Phone Service (Most Expensive to Least)
No. 1: Hong Kong
Installation fee (HKT): $475
Monthly fee (HKT): $174-221 (1-3 lines, $10 discount per line after 5+ lines installed)
No. 2: Tokyo, Japan
Installation fee (SoftBank): $18-95
Monthly fee (SoftBank): $21-30 per line
No. 3: Singapore
Installation fee (Singtel): $75
Monthly fee (Singtel): $14-19 per line
Montly fee (StarHub): $9-15 per line (fewer than 20 staff)
No. 4: Shanghai, China
Installation fee (China Telecom): $48
Monthly fee (China Telecom): $5 per line
No. 5: Beijing, China
Installation fee (China Telecom): $30
Montly fee (China Telecom): $5 per line
No. 6: Seoul, South Korea
Installation fee: N/A
Monthly fee (LG U+): $4 per line
Monthly fee (Korea Telecom): $6 per line
Monthly fee (SK Broadband): $4 per line
Subscription fee (LG U+): 30/month
Subscription fee (Korea Telecom): $72/month
Subscription fee (SK Broadband): $30/month
Some information is only available upon request. For those, contact the local carrier/supplier to learn more. All numbers have been rounded to provide estimates for each service/product.
All amount listed are assumed to be USD.
How Can JETRO Help Reduce Costs for Companies Who Choose Japan?
Companies that want to set up an office in Japan can utilize JETRO’s free, temporary office space while they search for a long-term location. They can also work with JETRO’s staff to identify unlisted office sites as well as apply for government subsidies that can reduce office setup costs.
JETRO’s office space is fully-furnished and comes with a reception area, conference rooms, and an event hall. Office space is free for the first 50 days, after which companies can pay a subsidized rate to stay (provided room is available). To see images of our office space, visit our services page.
JETRO’s Tokyo office space is located in the Akasaka district, a neighborhood home to FujiFilm, Komatsu, Universal Music Japan, and Geneon Universal Entertainment. Akasaka is a 12 minute trip to the Marunouchi/Otemachi districts (including Tokyo Station) and is bordered by Roppongi, a neighborhood known for its lively entertainment scene.
To learn more, contact your regional JETRO office. Companies must go through a qualification process as part of using JETRO's office space services.
