COMMERCIAL MARKET Spore CBD 8th costliest office district in the world At S$11 per square foot (psf) per month, or US$103 psf per year, the extended central business district comprising Raffles Place and Marina Bay is the eighth most expensive office area in the world. Taking into account quoted rents from only premium office space in top sub-markets, Singapore was inched out by other Asian locations such as Hong Kongs Central which commanded rents of HK$105 psf per month (US$162 psf per year) and Beijings Finance Street where corporates paid rents of 750 yuan per square metre per month (US$137 psf per year). Hong Kong and Beijing snagged second and third places, respectively for the most expensive office areas in the world. The top spot, St Jamess in London, cost £125 psf per year, or US$194 psf per year. Menlo Park, Silicon Valley, California, for instance, which ranked fifth at US$111 psf per year, is expected to climb the ranks as tech-driven demand continues to push up rental rates. Market dynamics, however, can also have the converse effect. Tokyo was the most expensive market for office space in the world for many years, but it was hit hard by the global financial crisis and has been surpassed by other Asian power cities. Ranked 10th on the list, Tokyos Marunouchi, which is located on the west side of Tokyo Station, achieved rents of 28,600 yen per tsubo (a unit of measure for area) per month (US$98 psf per year). The list, does not include several emerging and frontier cities where severe supply issues create exceptionally high rents, such as Rio de Janeiro and Lagos. This is because many of these thin markets - Luanda, Angola, for instance, have asking rents as high as US$200 psf - are not directly comparable to the more mature markets featured on the list. Source: Business Times –25 October 2013
Posted on: Fri, 25 Oct 2013 11:13:20 +0000
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