Hong Kong's office occupancy costs plunged in the aftermath of the global financial crisis last year, but recovering demand coupled with tight supply will see the per workstation cost of leasing prime office space in the city rise at one of the fastest rates in the world this year, according to property consultants DTZ. In a survey, DTZ reports that Hong Kong was ranked the fourth most expensive office market in the world last year, though occupancy costs per workstation fell 22 per cent year on year. The ranking was the same as that in 2008, however, since other cities saw bigger declines in their office occupancy costs. Paris, ranked No 2 in 2008, fell to sixth spot, after a drop of 31 per cent, and Dubai, ranked No 3 in 2008, fell to No 11 last year after occupancy costs declined 34 per cent. Ranked as the most expensive office market in the world last year was the West End of London, which saw only a modest 11 per cent decline in occupancy costs to US$21,420 per workstation. It was No 5 in 2008. Tokyo, which was ranked No 1 in 2008, fell to the second spot last year, followed by Washington DC, which was ranked No 7 in 2008. Total occupancy cost is the average total costs of leasing prime net usable office space. DTZ reviewed current trends in office occupancy costs at 116 business districts in 47 countries and territories worldwide. Occupancy costs per workstation provides a better comparison of expenses around business districts as it reflected the way organisations everywhere occupy and use space. This year, the top 10 locations will experience growth in occupancy expenses, with London (City) expected to grow fastest at 12.4 per cent while Hong Kong will see an increase of 4.3 per cent, according to Alva To, the head of consultancy at DTZ. 'Financial institutions especially hedge funds have been the main players in the Central office market in Q4, along with mainland enterprises,' Mark Price, DTZ's head of business space for North Asia, said.
