Hong Kong Tops Global Office Rental Rates Again
Once again Hong Kong’s office leasing rents are the world’s most expensive, a report released Thursday revealed.
In a survey of 31 cities around the world by Knight Frank’s Skyscraper Index, Hong Kong’s average leasing for prime office space is US$278.5 per square foot per year, according to a 9-month period ending June 30.
That ensured Hong Kong’s top ranking for the second straight year.
By comparison, office lease rates in the city are 76 per cent higher than second-place Manhattan, New York, where premium office space fetches an average of US$158 per square foot per annum.
Tokyo, London and San Francisco rounded out the top five places.
Mainland China companies expanding into Hong Kong helped push rents high, as they cornered 64% of all prime office transactions, the report said.
“Going forward, Mainland Chinese firms entering Hong Kong will be the key demand driver,” the report said.
“Hong Kong is increasingly being used as the first stop for Chinese outbound capital and a springboard to world markets.”
With its huge lead and consistent deamand for space among companies setting up shop in the city, Hong Kong is expected to keep its top ranking for the next three to five years.
Hong Kong’s rents are expected to increase between 2 and 5 per cent next year, and 4.5 per cent from the end of last year to the end of 2019.