Hong Kong was ranked as the most expensive location to rent office space last year, according to a new survey.
"Fuelled by the economic recovery, Hong Kong entered 2011 as the most expensive office location in the world," said property consultant DTZ in its annual report on global office occupancy costs.
The average price of office property per workstation in Hong Kong climbed by a third to $22,330, surpassing London's West End, which had the top spot in 2009.
The city-state has acknowledged its seven million residents’ concerns about soaring property prices and have proposed increasing land supply, stricter mortgage lending and new tax for legal document to discourage speculations.
DTZ said that office costs in Hong Kong’s prime districts jumped 31 percent year-on-year from US$16,970 in 2009, outperforming the rest of the Asia Pacific region and the world.
"We forecast that Hong Kong will continue to outpace other markets in the region, with the gap between it and other centres widening," said David Green-Morgan, Head of Asia Pacific research at DTZ.
Surabaya, Indonesia was ranked as the most economical place to rent in 2010, while Shenyang, Qingdao, and Dalian were the least expensive places to rent in China.
Global average occupancy costs are expected to increase 2.5 percent annually, with the strongest growth in Asia Pacific at around 3.7 percent, said DTZ.
Source: Commercial Guru
