Four of top five most expensive office locations in the world are in Asia
London's West End's tops the CBRE survey list, followed by 4 Asian cities including HK, Beijing
Four of the top five most expensive office locations in the world are in Asia, according to international property consultant CBRE.
London's West End's overall prime occupancy costs topped the most-expensive list at US$267.14 per square foot. It was followed by four Asian cities, with Hong Kong's Central ranking the second at US$254.23 per sq ft. Beijing's Finance Street and the city's Central Business District were in third and fourth place, respectively, according to a survey by CBRE Research. New Delhi's Connaught Place CBD rounded out the top five, said CBRE, which tracks occupancy costs for prime office space in 127 markets around the globe.
Hong Kong's Central is the only market in the world - other than London's West End -with a prime occupancy cost exceeding US$200 per sq ft. West Kowloon in Hong Kong was in sixth place at US$150.26 per sq ft. Shanghai's Pudong was in eleventh place.
While Asia retained its dominance in the world's most expensive office locations, the growth slowed, reflecting the economic pressures that prevailed in the region over the past year.
Overall global prime office occupancy costs rose 2 per cent year-over-year, with Asia Pacific up 1.4 per cent, said CBRE.
Henry Chin, head of research for CBRE Asia Pacific, said in the Asia Pacific region, occupancy cost trends were mixed, with regional surveys showing stronger hiring intentions among employers in India, Taiwan, New Zealand, the Philippines and Japan while corporate hiring activity remained muted in other locations.
"India and the Philippines also continued to benefit from growing IT back office services looking for operational and costs efficiency. Throughout Asia, technology firms, business process outsourcing firms and non-banking financial institutions are in expansionary mode, stimulating demand for office space," said Chin.
Commenting on the global office market, Richard Barkham, CBRE's global chief economist, said the change in prime office occupancy costs mirrored the gradual recovery of the global economy. CBRE said occupier caution has declined and corporate confidence has been on the rise.
"This confidence is starting to translate into a degree of expansionary momentum," said Barkham.