HONG Kong has overtaken Tokyo with the most expensive office-occupancy costs within the Asia Pacific region, or the second-highest in the world.
Shanghai holds 24th place on this year's list as the most expensive location on the mainland, the latest global report on office-occupancy costs by Cushman & Wakefield has found.
According to the 2008 edition of "Office Space Across the World" released yesterday by the global real-estate services provider, London retains its title as having the most expensive office-occupancy costs on the planet, with prime space in the city's West End now at US$9.32 per square meter per day, a 30 percent increase from a year earlier in local currency terms.
Hong Kong, the new runner-up, has recorded a 40 percent year-on-year increase with prime office rental standing at US$7.13 per square meter per day, while in Shanghai, rental for prime office spaces is set at US$2.06 per square meter a day, the report said.
"With the expansion of the financial-services sector, the demand for office space grew significantly in Hong Kong in 2007, with rental levels advancing by almost 40 percent in the Central (CBD) submarket, and with limited new supply expected for 2008, it is expected that rents will continue to grow," said Richard Middleton, executive managing director of Cushman & Wakefield's China operation.
"Meanwhile, the Chinese mainland market delivered a more steady performance, compared to Hong Kong, with rents growing an average five percent over the year."
In particular, Beijing saw a significant amount of new supply in Grade A space and, as a consequence, rental growth has been marginal. Shanghai, on the other hand, has seen an increase of 10 percent in rentals from last year.
"Overall, China should continue to see steady growth in 2008 mainly due to the strong domestic economy and also because of continued improvements in infrastructure such as the case in Beijing, with the upcoming Olympics Games,'' Middleton said.
Overall, the Asia Pacific region recorded exceptional rental growth in 2007 rising an average of 25 percent, a significant increase as compared to the 10 percent growth in 2006.
Singapore was the fastest regional riser in 2007, with rents increasing by 78 percent in the CBD, characterized by high demand and tight supply.
http://www.shanghaidaily.com/sp/article/2008/200802/20080223/article_349681.htm
Shanghai Real Estate market
Shanghai (Chinese: 上海; Pinyin: Shànghǎi; Shanghainese: /zɑ̃'he/; abbreviation: 沪; nickname: 申), situated on the banks of the Yangtze River Delta in East China, is the largest city of the People's Republic of China and the eighth largest in the world.[4] Widely regarded as the citadel of China's modern economy, the city also serves as one of the nation's most important cultural, commercial, financial, industrial and communications centers. Administratively, Shanghai is a municipality of the People's Republic of China that has province-level status. Shanghai is also one of the world's busiest ports, and became the largest cargo port in the world in 2005.
Originally a fishing town, Shanghai became China's most important city by the twentieth century and was the center of popular culture, intellectual discourse and political intrigue during the Republic of China era. After the communist takeover in 1949, Shanghai languished due to heavy central government taxation and cessation of foreign investment, and had many of its supposedly "bourgeois" elements purged. Following the central government's authorization of market-economic redevelopment of Shanghai in 1992, Shanghai has now surpassed early-starters Shenzhen and Guangzhou, and has since led China's economic growth. Some challenges remain for Shanghai at the beginning of the 21st century, as the city struggles to cope with increased worker migration, a huge wealth gap, and environmental degradation. Despite these challenges, Shanghai's skyscrapers and modern lifestyle are often seen as representing China's recent economic development.
Saturday, February 23, 2008
Hong Kong's office space now dearest in Asia Pacific
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