A survey by property consultancy, DTZ showed that last year Hong Kong boasted the world’s most expensive office space, overtaking 2009 leader, London’s West End.
There has been a 31 per cent increase in the annual occupancy cost per workspace from US$17,050 in 2009 to last year’s figure of US$22,330. The survey evaluated office space occupancy prices, based on factors such as rent, maintenance costs and property taxes, in 121 business districts over 47 countries and territories across the globe, considering how prime commercial space is used in each location.
“Hong Kong is traditionally a volatile and cyclical market responding very quickly to highs and lows,” said DTZ’s head of Asia Pacific research, David Green-Morgan. “This is reflected in the fact that prime rent took only one year to recover its ground in the wake of the financial crisis.”
The gap between occupancy costs in Hong Kong is expected to widen, with the figure projected to rise to US$31,250 by 2015.