Hong Kong still second most expensive city for office space
A study by property consultancy DTZ found annual grade-A office occupancy costs in Hong Kong dropped 2.6 per cent to US$21,600 per workstation last year, 17.9 per cent lower than London's West End.
Hong Kong remained the world's second most expensive place to lease an office after London's West End last year, as Central rents dropped due to weak demand from financial tenants.
A study by property consultancy DTZ found annual grade-A office occupancy costs in Hong Kong dropped 2.6 per cent to US$21,600 per workstation last year, 17.9 per cent lower than London's West End.
London's occupancy cost edged up 4.9 per cent to US$26,310.
"The gap between the two cities has widened," the study said. "In London, buoyant demand led to an increase in rents, while cost-cutting measures in central Hong Kong drove rents down. Meanwhile, tier-two cities in China and India continue to offer the least expensive office space globally. This reflects rising demand in London and, on the other hand, continued consolidation and decentralisation in Hong Kong."
Hong Kong grade-A office rents in Central dropped 6.4 per cent last year, accumulating a 21 per cent decline after peaking in the second half of 2011, according to a report by Savills.
It said the poor performance due to weak demand from financial tenants was likely to continue this year as the global economic recovery was still uncertain.
