Hong Kong’s Central district is once again the world’s priciest prime office market, with five other Asian markets joining the top 10, according to advisor CBRE.
Hong Kong Central prime office rents stood at $322 per sq. ft. per year during the 12 months to end-March, ahead to London’s West End market, where rents are $222.70.
Hong Kong’s Kowloon district took the third spot and was joined by Beijing’s Finance Street, Beijing’s CBD, Tokyo’s Marunouchi/Otemachi district and New Delhi’s Connaught Place in the top 10 global rankings.
“Asia Pacific 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.”
Singapore was Asia Pacific’s largest gainer in the prime office price race, growing 17.3% year-on-year to $114.28, despite recent market stabilisation.
Ho Chi Minh City and Hanoi prime office rents jumped 9.6% and 8.8% respectively, placing them among the top 20 fastest growing office rental markets.
However, Jakarta posted a 7.3% YOY decline during the period, while Shanghai’s Pudong market also fell 0.9%.
The new research comes as CBRE recorded rising leasing costs across most prime office markets around the world, up 3.6% YOY globally.
Asia Pacific posted a 3.3% increase in average prime office leasing costs, nearly doubling its growth rate of the prior year.