China's office rents among highest in the world
Four of the world's 10 most expensive office markets are in China with Hong Kong's Central district retaining the top spot for prime office rents for the fourth consecutive year, global real estate services provider CBRE said in a report released on Tuesday.
Despite recent evidence of moderating prices, Hong Kong's Central district maintained its top ranking with prime office rents standing at US$3,466 per square meter per year in the 12 months to March 31.
It was closely trailed by London's West End (US$2,397) and Hong Kong's Kowloon district (US$2,246), according to CBRE, which tracks 122 markets in its annual Global Prime Office Occupancy Costs report.
Beijing's Finance Street (US$2,021) stood at fifth and Beijing's Central Business District (US$1,906) followed in sixth spot.
Two other Asian locations made into the world's top 10 list. Tokyo's Marunouchi/Otemachi district (US$1,806) and New Delhi's Connaught Place (US$1,549) grabbed the 9th and 10th places.
"The Asia Pacific region is again recalibrating the global benchmark in prime office rents as demand and supply dynamics continue to prompt prices to hit new heights across core business districts," said Ada Choi, head of occupier research, Asia Pacific, at CBRE.
"As corporations continue to look to attract and retain talent by securing office environments of the highest quality, we expect this momentum to carry over into 2020 despite macroeconomic and geopolitical headwinds."
Shanghai's Pudong and Puxi districts ranked 12th and 16th at US$1,383 and US$1,177.
CBRE defines prime office occupancy costs as the cost — rent, local taxes and service charges – to occupy the highest-quality office space in each market's highest-quality location.