Hong Kong became the most expensive city in which to rent office space in 2008, according to a new report issued by Cushman and Wakefield. It is the first time in nearly 10 years that Hong Kong sits in that spot, taking it over from London. Property consultant Cushman and Wakefield compared rents in 202 major cities across the globe to come up with its rankings.
Office rents rose an average of three percent in 2008, which is a substantial decline from 2007 when rates rose some 14 percent. That is also the lowest rental increase since 2004, and the falling pace was decidedly faster in London. According to Cushman and Wakefield’s report, rents in London’s West End dropped a whopping 23 percent to US$1,782 per square meter, while rents in Hong Kong’s Central District fell only four percent to US$2,214 per square meter.
While Hong Kong currently sits as the most expensive place to rent offices, some analysts expect that title won’t last through the year. With rising unemployment and the global slowdown hitting Asia and China, it is expected that rents in the city will fall a good amount by the end of the year.
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