RumahHokie.com (Hong Kong) – Jakarta ranked 15th as the best financial location in Asia with a score of 37%, only better than Delhi, India. This was revealed in the latest research report Top Locations in Asia: Finance, released by Colliers International, a global leader in commercial real estate services.
The report noted Jakarta’s financial market will continue to opt the CBD area as the preferred location as it has been the heart of financial centre in Indonesia.
Colliers’ Indonesia Head of Research, Ferry Salanto, stated: “The financial occupiers have underpinned the commercial property in Jakarta which include sub sectors like banking, insurance and other financial-related companies. However, as an emerging market, Indonesia is still unmatched by any other developed markets. Jakarta property market is now waiting for a momentum for recovery at least after a few months post the election. We have also seen that fintech companies start expanding in looking for office space.”
The report, based on a comprehensive study of 16 cities in developed and emerging markets across Asia, examines nearly 60 criteria across a spectrum of socio-economic, property and human factors to determine the best locations in Asia for Finance sector occupiers. This is the second report in our Top Locations in Asia series, following Technology.
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Andrew Haskins, Colliers’ Asia Head of Research, commented: “Based on quantitative and qualitative analysis of socio-economic, property and human factors, Colliers believes the three top locations in Asia for financial occupiers are Hong Kong, Tokyo and Singapore. At number 4, Shanghai is benefiting the most among Chinese cities from the country’s financial liberalisation, while Seoul at number 5 is a wild card finance location with strong scores.”
Top Locations: Hong Kong, Tokyo, and Singapore
Hong Kong (Score: 61%; Position: #1) scores highly on socio-economic factors, including employment criteria such as political stability, ease of doing business and regulatory governance, and wealth factors such as stock market value, city inward FDI and position in cross-border banking.
Under property factors, high wages and rents push up employer costs, but total office stock is high and there is a wide gap in rents between the CBD and other areas. Hong Kong is #2 in Asia on human factors, due partly to a low tax rate and high quality of living.
Tokyo (Score: 60%; Position: #2) comes in second place since it scores highest overall on socio-economic factors, reflecting its huge size, high wealth and stability as a global financial hub.
The city’s high socio-economic score is partly offset by its low property score—reflecting high staff costs, rents and a conservative office facility offering. However, Tokyo scores well on human factors, due largely to its high quality of living, safety, climate and lack of pollution.
Singapore (Score: 55%; Position: #3) scores very highly on socio-economic factors, especially employment criteria, due to high political stability, the ease of doing business, high-quality infrastructure and strong regulatory governance. It lacks the banking scale of Tokyo or Hong Kong but is a key wealth management centre.
Singapore only has a modest score on property factors, due largely to its limited stock of prime grade office space. However, Singapore comes top on human factors such as personal tax, safety, living quality, climate and pollution, and the high-tech city metric included in our scoring.