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Singapore now the 7th most expensive for office space

Posted by jtsmyth8 on February 14, 2008

Singapore has moved into the global top 10 most expensive office markets for the first time, with occupancy costs hitting an average of about US$130 per square foot, according to global real estate consultancy Cushman & Wakefield. Office rents, the largest component of occupancy costs, rose 40 per cent on average in the world’s top 10 office locations, it said in a report that compares office occupancy costs in 203 locations in 58 countries across the globe.

Worldwide, rents climbed by 14 per cent on average, with London retaining its position as the world’s most expensive office location. Hong Kong is second, followed by Tokyo.

Singapore was one of the star performers in the office market last year. It rose ten spots to the 7th position as prime office rents chalked up a 78 per cent rise last year.

Said Mr Arsh Chaudhry, executive managing director of Cushman & Wakefield in South-East Asia: ‘Rental growth in Singapore was led by strong demand from the banking and services sectors coupled with very limited supply of quality office space.’

London’s rents are now triple the average paid by occupiers in New York’s Midtown business district, said Cushman & Wakefield. (story)

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One Response to “Singapore now the 7th most expensive for office space”

  1. SINGAPORE has jumped 10 places to become the world’s seventh-most expensive office location. The C&W report compares office occupancy costs in 203 locations in 58 countries. New entries include Kyiv in Ukraine at 16th place with occupancy costs at US$78.22 psf per annum, and Ho Chi Minh City in Vietnam at 17th place with occupancy costs at $75.81 psf per annum.

    Of these 203 locations, 79 per cent registered rental growth, 20 per cent showed stable growth and only one per cent experienced a fall in rentals compared to 6 per cent in 2006.

    Perhaps also interesting to note is that of the bottom 10 locations in C&W’s list of 58 countries, neighbouring South-east Asian cities took up four spots.

    Bangkok took the 58th position, with office occupancy costs at US$26.52 psf per annum, preceded by Jakarta, at 57th position with occupancy costs at US$26.54 psf per annum, Manila in 50th place with occupancy costs at US$33.75, and Kuala Lumpur 49th, with occupancy costs at US$34.39 psf per annum.

    Great post,
    Cheers,
    Leanne

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