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.
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.