Vice-President of WeWork Greater China Quan Bin speaks at a ceremony celebrating the seventh anniversary of WeWork’s entry into the Chinese market in Causeway Bay, Hong Kong, Nov 23, 2023. (PROVIDED TO CHINA DAILY)

Coworking space provider WeWork Hong Kong reported a 20 percent increase in occupancy from the beginning of the year, bucking the city’s sluggish office market trend.

The company currently boasts an occupancy rate nearing 80 percent in the international trade hub.

Vice-president of WeWork Greater China Quan Bin attributed the growth to the HKSAR government’s latest initiatives to entice businesses and talent, which include relaxing visa requirements for foreign employees and developing a headquarters economy.

READ MORE: WeWork weighs exiting some HK property in pullback

“Hong Kong has experienced the fastest growth (in occupancy rate) in the Greater China region,” Quan told China Daily. 

WeWork operates seven locations in Hong Kong, including one at Cityplaza One, in Taikoo Shing, which is fully leased to clients, with a total leased floor area of around 27,800 square meters, according to market estimates

“Our current operation is good. … The overall situation in Hong Kong this year is even better than that on the Chinese mainland. … Many mainland companies have expanded their market overseas, and foreign firms have returned to the mainland through Hong Kong,” said Quan , who added that he regards Hong Kong as a significant market for the company. 

However, Quan noted that the overall economy is not stable, and the Hong Kong real estate market is in a downward trend. “Both rents and occupancy rates are declining, so there are still challenges for us.” 

“We will pay more attention to the structure of our clients, including their income growth and cost reduction. … If there are suitable projects, we will continue to expand, but in the short term, we will focus on improving existing business projects,” he added. 

WeWork operates seven locations in Hong Kong, including one at Cityplaza One, in Taikoo Shing, which is fully leased to clients, with a total leased floor area of around 27,800 square meters, according to market estimates.

“This year marks the seventh anniversary of our entry into the Chinese market,” Quan said. “In terms of the number of locations, Hong Kong ranks third, trailing behind Shanghai and Beijing.”

New York-based WeWork Global filed for bankruptcy on Nov 6. The US parent firm sold more than 51 percent of its control over businesses operating in China to a Shanghai-based investment firm. WeWork Global has retained a minority stake in its Chinese joint venture since 2020.

WeWork launched its first Chinese location in Shanghai in 2016. During its halcyon days, the company operated 12 locations in Hong Kong, covering an area of approximately 77,110 square meters.

READ MORE: Office-share operator WeWork 'to take 14 floors in LKF Tower'

The Hong Kong office market currently faces multiple headwinds amid high vacancy rates, high interest rates and a fresh supply of office space in coming years. 

The premium office rents per square meter in Central — the world's most expensive commercial property market — slumped more than 20 percent in the second quarter compared to the same period in 2018, according to Statista, an online data provider.

A report published by real estate brokers Cushman & Wakefield said the overall office space availability rate rose by 0.4 percentage points over the quarter to reach 17.7 percent in the third quarter.

Cushman & Wakefield said shared offices are expected to remain attractive to certain office occupiers, such as startups and freelancers in search of flexibility, cost-effectiveness, amenities, collaboration and networking, and all-in-one office solutions.

However, as more choices are presented in the market amid high availability in the traditional Grade A office sector, it is likely that rents for coworking spaces will remain competitive in the near term to align with the broader office sector trends.