Hong Kong is the world’s most expensive office market
According to the report of global real estate consultant JLL, Hong Kong’s Central region has the world’s most expensive premium office rents for four years. The occupancy costs in the lower market, including rent, tax and service charges, are 60 percent more expensive than New York Midtown and 75 percent more expensive than London West End.
Hong Kong’s Central District are driven by Chinese firms snapping up Grade A office space. However, this demand decreased in the last quarter. This has led some companies to seek more suitable office space in decentralized areas.
Denis Ma, Head of Research, JLL Hong Kong said that Hong Kong is a key financial hub in Asia, and Central is still the most important financial district. But vacancies are low in Central, which has pushed office rents up. Companies are now looking beyond Hong Kong’s traditional core office markets with more than half of all new lettings in the third quarter of 2018 taking place in decentralised locations. Hong Kong East and Kowloon East have emerged as favoured alternatives. Notable tenants who have shifted to Hong Kong East recently include Ernst & Young and Baker McKenzie.
The counties in Greater China (Hong Kong, Beijing, Shenzhen and Shanghai) are now the most expensive 10 premium office markets in Asia. As a result, decentralization is taking place in many Chinese cities, because companies are saving US $ 338 per square meter in Hong Kong, and $ 189 per square meter in Beijing Finance Center and $ 131 per square meter in average. Pudong district of Shanghai. Meanwhile, Singapore rose to the top 10 for Asian cities and 14th in 2017.
Financial service companies ready to pay for premium office spaces
The banking and financial services sector is one of the leading sectors of the industry in more than half of the 72 markets, and is the highest level of premium office space worldwide.
Corporate invaders in all industries are trying to unify their portfolios in strategic positions. There is a growing recognition of the role that real estate plays in talent and shooting. Hong Kong’s Center is the best example for excellent transport connectivity, local facilities and the quality of digital infrastructure – the factors that organizations consider when choosing the next office location.
Source: World Property Journal
Melike Vodina / realestatecoulisse.com