Hong Kong Office Property Most Expensive in the World

Hong Kong Office Property Most Expensive in the World

Hong Kong occupies the top spot as the world’s most expensive office location for a second year in a row, The Times reported on Monday, May 27, citing the latest global office league rankings compiled by property agency Knight Frank. The sprawling South-East Asian city, which hosts some of the most exclusive and expensive pieces of real estate in the world, has claimed the title ahead of London, Moscow, Tokyo and Paris.

**Hong Kong commercial property**
The Hong Kong property market as a whole is amongst the world’s top real estate markets, but when it comes to office property it is in a league of its own. The Asian city has topped Knight Frank’s global office league rankings for a second consecutive year for 2012, as rents reached an annual £1,086.73 per square metre. The only market that came close to that level was London, where rents reached £1,022.58 per square metre a year. Moscow remained a distant third at £742.17 per square metre a year. Still, that

was an improvement for the Russian capital which overtook Tokyo (£730.66 per square metre per year).
Paris completed the top 5 at £653.91.
Looking at London’s commercial property stock, the low vacancy rate (5.6 percent) has prompted Knight Frank to forecast further growth for the “West End’s most exclusive districts, Mayfair and St James’s” in 2013, meaning that the UK capital will probably retain its lead over Moscow, and could possibly narrow the gap to the top spot. However, the property consultant expects that the Hong Kong commercial property market will see a growth in office rents too.

**Asia-Pacific centres**
The march of the Hong Kong commercial property sector was complemented by robust performance in other centres in the Asia-Pacific region, the rankings showed. As mentioned, Tokyo remains in the top 5, while another “Asian Tiger” – Singapore – has retained its sixth place from 2011.
“While Singapore remained unchanged in sixth place, year-on-year it is worth noting that back in 2006 the city ranked thirteenth, highlighting the growing significance of Asia-Pacific centres,” Knight Frank observed.

!m[London Comes Second](/uploads/story/2506/thumbs/pic1_inline.png)
The property consultancy also highlighted the “startling leap up the rankings” of Beijing, which has climbed to 12th place from 18th in the previous year. This increased “the likelihood of the Chinese capital entering the top ten this year” Knight Frank noted.
Meanwhile only US city that made it into top 10 was Manhattan, New York, climbing to 10th place from 15th in 2011 with £484.91 per square metre a year. Washington DC and San Francisco are the other two US cities in the top 20, placed 17th and 19th respectively.

By Michael Harris
I began trading in my early 20's at a local company and since then have combined my knowledge and love of content to become a news writer. I am passionate about bringing insightful articles to readers and hope to add some value to your portfolios!

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.