World's most expensive prime office spaces are in Hong Kong, London and New York

The overall prime occupancy costs for Hong Kong Central came to US$303 (S$421) per sq ft per year, according to the annual report by CBRE Research.
The overall prime occupancy costs for Hong Kong Central came to US$303 (S$421) per sq ft per year, according to the annual report by CBRE Research.PHOTO: EUROPEAN PRESSPHOTO AGENCY

SINGAPORE -Hong Kong's Central district topped the list of most expensive prime office space, followed by London's West End andNew York's Midtown area, according to the annual report by CBRE Research.

The overall prime occupancy costs for Hong Kong Central was US$303 (S$421.1) per square feet per year, the annual global prime office occupancy costs report, followed by London's West End at US$214 psf and New York Midtown at US$203 psf.

Hong Kong's West Kowloon (US$190 psf) and Beijing's Central Business District (US$183 psf) rounded off the top five spots.

Singapore was ranked 27 with a cost of US$85.02 psf.

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"The global top-10 list reflects the ongoing strength of global gateway cities in attracting and maintaining a successful occupier base," said Richard Barkham, global chief economist, CBRE.

The report also said that global prime office space costs-which reflect rent, plus local taxes and service charges -rose 1.9 per cent year-over-year, with the Americas up 3.6 per cent, Europe, the Middle East and Africa (EMEA) up 0.8 per cent and Asia Pacific up 1.2 per cent.

Durban (South Africa) had the highest increase in occupancy cost overall, though Stockholm (Sweden) registered some of the fastest growth in Europe, along with Palma de Mallorca (Spain), Belfast (UK) and Amsterdam (Netherlands).

In Asia Pacific, Shanghai (Puxi) in China had the highest growth in occupancy cost, followed by Guangzhou, Bangalore and Shanghai (Pudong). Buenos Aires showed the biggest increase in the Americas overall, while suburban Denver, suburban Houston and New York Midtown South saw the largest occupancy-cost increases in the US.

CBRE tracks occupancy costs for prime office space in 121 markets around the globe. Of the top 50 "most expensive" markets, 21 were in Asia Pacific, 16 were in EMEA and 13 were in the Americas.