Three Pacific cities in global business locations top 50

The world’s largest companies are opting to locate their offices in booming Asian economies, reflecting a shift in global economic power, according to research by CB Richard Ellis (CBRE).

Business Footprints is the first study of its kind that analyses the office locations of 280 of the world’s largest companies across 232 cities. The study found Hong Kong is the most popular city for international businesses, with 68.2% of international companies surveyed represented.

The combined impact of rapid growth in mainland China’s major markets, easy access to other major Asian economies, and Asia’s world-leading emergence from the global recession have enabled Hong Kong to act as a gateway between east and west. The city also boasts the world’s third-lowest tax regime globally; corporate tax at a maximum of 16.5%, personal income tax at a maximum of 15% and no sales tax or VAT.

Hong Kong is closely followed by Singapore, home to 67.5% of surveyed companies, and then by Tokyo (63.9%). At fourth position is London – the only city in the Western world to be ranked in the top five most popular cities worldwide, alongside the rapidly emerging Eastern powers. The top five is completed by Shanghai (61.4%), which is increasingly adopting the role of financial and business capital of China.

The Pacific region achieved three positions in the top 50. Sydney is home to 48.6% of surveyed companies, placing it at equal 16th in the rankings. A total of 136 companies of the 280 surveyed chose to conduct business in the city.

Melbourne was ranked in 43rd position followed by Auckland at 47 equaland Brisbane and Wellington placing at 90th and 119th respectively.

CBRE senior director transaction management, global corporate services, Tim Nicholas said the Business Footprints survey indicated companies headquartered in Asia Pacific had significantly less propensity for overseas expansion than those headquartered elsewhere.

“At present, Asia Pacific-domiciled companies also typically confine their choice of locations in overseas markets to fewer cities than companies from other regions,” Mr Nicholas said.

“The largest proportion of the global office footprint of Asia Pacific domiciled companies is in their own region. Nearly 40% of companies headquartered in Asia Pacific were present in fewer than 10 countries, compared with fewer than 20% of those headquartered in EMEA or the Americas.”

The survey found the world’s largest companies rate Australian locations as particularly strategic. Australia placed equal ninth with Hong Kong in the country rankings with 68.2% or 191 companies maintaining an office presence in the country. New Zealand also made the Top 50, ranking a respectable 46th place with 34.6% or 97 companies present in the market.

This article first appeared in NBR's NZ Property Investor.