‘S’pore offers best value for businesses’

HONG KONG — Hong Kong is the most expensive city in the world in which to rent business and residential space, while Singapore offers businesses locating there the best-value accommodation in relation to the size of its economy, according to a report released yesterday by Savills.

New York displaced London as the world’s second most expensive city in the first half of this year, according to the World Cities Review, which measures costs in the world’s 10 leading cities. Hong Kong home prices have more than doubled since early 2009 to a record, raising concerns of an asset bubble and stoking public discontent.

It would cost US$1.63 million (S$2 million) a year for a seven-person team to set up in Hong Kong, according to Savills Executive Unit, a core business unit measure the broker uses to compare costs across cities.

Meanwhile, Hong Kong Chief Executive Leung Chun-Ying said yesterday that measures to stabilise the property market are necessary because the rise in property prices will affect people’s ability to afford housing and financial stability.

Speaking to reporters before attending an Executive Council meeting, Mr Leung said prices had stabilised and overseas and speculative demand had decreased after the measures were introduced.

His remarks come after Hong Kong legislators said on Monday that the latest property cooling measures announced in October last year were unfair to locals, and urged the government to exempt companies set up by permanent residents from the new buyer’s stamp duty, local media reported. Agencies