Cryptocurrency startups are flocking the Hong Kong market leading to an increase in rental rates on the island. Although the Crypto market has turned bearish recently, this has not dampened the spirit of startups if the rent rates in Hong Kong are to be considered. Other companies have felt the impact of the new entrants and are moving to pricier areas.
Rental Rates In Hong Kong Increase Significantly
South China Morning Post recently reported that the rental rates in Hong Kong have skyrocketed, thanks to many Cryptocurrency startups moving to the island. These businesses are paying an average monthly rate of $1.3 million according to the news outlet. The same rate can be used to pay for almost 5 floors in New York. The rates are also higher than those in Beijing’s Finance Street and London’s West End.
Many Crypto firms from the mainland China have relocated to Hong Kong after Beijing banned the virtual currencies and related activities. BitMEX Cryptocurrency exchange is one of the companies that are not deterred by the hefty rent. Diginex, an altcoin mining company is also finding the current rates affordable. The two companies have already taken over 72,000 square feet of grade A space in the city.
Other Businesses Feeling The Impact
With the increasing number of Cryptocurrency firms in Hong Kong pushing rent rates, other businesses are already feeling the impact and responding accordingly. Goldman Sachs Groups and BNP Paribas are some of the companies that have felt the impact of the new rent rates. BNP has been forced to move its workers to other pricier places. JPMorgan Chace & Co has moved some of the operations to cheaper office spaces elsewhere.
The fact that most Cryptocurrency firms are willing and able to pay such high rental rates is an indicator that they are confident about the sector. Despite the Crypto marketplace becoming tough in recent times as most altcoins have dropped their value significantly, businesses in the sector are still hoping for good times ahead.
Cryptocurrency mining has become less lucrative than it was towards the end of this year. Nevertheless, businesses in the sector are still operating and willing to pay the hefty rates in Hong Kong. These startups are not ready to leave the market and are willing to do anything possible until such a time when the market will improve.
Crypto Startups Creating Jobs In Hong Kong
The recent movement of various Crypto firms to Hong Kong has also created job opportunities. Many businesses are moving their headquarters to the island. A recent study has established that the demand for blockchain and altcoins jobs has increased by over 50 percent in Asia. The increase can be attributed to the fact that these startups are focusing on the existing technology.
Python language developers are among the most sought-after developers in the Crypto sector. This is because of their ability to develop blockchain innovations. Some people are of the opinion that blockchain will drive the next industrial revolution. Businesses and governments around the world are investing in the technology to establish how it could be used to enhance efficiency in different industries.