NewHong Kong’s Central overtakes London’s West End as the world’s most expensive office location

Central in Hong Kong has reclaimed its position as the most expensive office district in the world while West Kowloon remains in the fifth spot, according to CBRE Research’s latest semi-annual survey on global prime office occupancy costs.

The prime occupancy costs – which include rent, local taxes and service charges – in Central topped the list at US$290 per square foot per year, about 10.7 per cent higher than the US$262 in London’s West End, which dropped to second place.

Costs in West Kowloon came to US$179 per square foot per year.

Among the 126 cities surveyed, the two districts in Hong Kong saw the largest and third-largest year-on-year increases in such costs – 19.5 per cent for West Kowloon and 14.2 per cent for Central.

“A lack of space in prime areas in Hong Kong, coupled with stronger demand, particularly from mainland Chinese financial firms, allowed landlords to push rents upwards in the 12-month period to June,” said Rhodri James, executive director for advisory and transactions services, office, at CBRE Hong Kong.