SPIRALLING property values in Hong Kong and improving infrastructure in Beijing have prompted some multinational companies to consider relocating their regional headquarters to the Chinese capital. Ivan Ko, group marketing director of Realty Pacific Holdings, said several multinationals had approached the company to locate office space in Beijing, despite rising rentals in a tight market. These multinationals, which he declined to identify, employ between 200 and 800 people in Hong Kong. But he said any company wishing to move to Beijing would have to wait until the end of next year, because no office space is coming on to the market in the interim. Set up six years ago, Realty Pacific pioneered the marketing of Beijing's prime office and residential developments which are licensed for sale overseas. Jin Hui Tower was the first such property, followed by Jin Cheng Zhong Xin on South Third Annular Road. Mr Ko said that only 40 licences have be en granted so far. The company is now booking clients for the 32-storey Beijing Silver Tower, which will provide 66,200 square metres when completed at the end of next year. An increasing number of foreign businessmen, encouraged by the improving infrastructure and the need to deal with bureaucrats on a regular basis were seriously considering opening offices in Beijing, he said. ''New rules and regulations are being issued almost every day needing quick clarification which often cannot be obtained by telephone or fax from Hong Kong,'' he said. Alex Wong, general manager of L & D Associates, Realty Pacific's main competitor in the Beijing market, said foreign businessmen were realising the need to ''deal with the man who makes the decisions face to face''. ''You may be dealing with a joint venture partner, but he actually is a senior government official, he said. Mr Ko said there had been a sharp increase in the number of expatriates arriving to do business in Beijing this year. This had pushed rentals for prime office space in the capital from US$57 (HK$500) per square metre to more than US$64 in November. In comparison, Grade A office space in Hong Kong is renting for US$91 per square metre. Beijing office rents rose by 20 per cent last year. Prices in Jin Hui Tower have risen from US$2,650 per square metre in November to US$3,200.