Prime office rents in average costed $255 per sq. ft. in the first half year of 2015.
Knight Frank released its Global Cities 2016 Report which studied the cost of renting office space in high-rise across worldwide metropolises between Q4 2014 and Q2 2015, on 15 October, it reported the rents in Hong Kong’s skyscrapers offices ranked the top.
Hong Kong’s skyscraper office rent per square foot reached US$255.5 per square foot yearly, over US$100 more expensive than New York which ranked in 2nd place with a rent of US$153 per sq. ft.
For overall prime office rents in Hong Kong CBD averaged at US$186 per sq ft, while International Financial Center (IFC) in Central which offers the most expensive office rental about US$264 per square feet yearly.
Hong Kong also ranked the 1st in 2014, with rents of US$250.5 per sq ft yearly, while Knight Frank expected rent of HK grade A offices to continue rise 12% from 2015 to end-2018.
Hong Kong office rents remain the world’s most expensive and the trend is expected to continue in the next few years even after mainland firms show signs of slowing their pace of expansion, Knight Frank said on 15 October.
Prime rent in high-rise office buildings grew 1.9 percent to US$255.50 (HK$1,992.90) per square foot in the first half from a year back, a report by the real estate group said. New York and Tokyo are ranked second and third at US$153 and US$125 psf, respectively.
The SAR clinched the top rank as the vacancy rate in Central is at a nearly record low at a mere 1.4 percent. Overall vacancy rate in the SAR also dipped to 1.7 percent last month, significantly lower compared to over 5 percent in other major cities such as London and Manhattan, said Thomas Lam Ho-man, head of valuation and consultancy.
Commercial agency director Nelson Lam Wu-cheung noted mainland companies were less active in the past few weeks in looking for office spaces amid China’s economic slowdown and sluggish stock market.
Still, he expects Chinese firms to take up nearly half of new leases in Central this year, up from 20 percent last year.