Office rents keep rising
Rising office rents in Bangkok have propelled the city up 24 places on the CB Richard Ellis Global Market Rents report to rank as the 141st-most expensive city out of 173 surveyed, and it looks as though rent hikes will continue.
Bangkok central business district (CBD) grade A office rents have risen 19.8 per cent over the past 12 months to an average of Bt704 (US$18.5) per square metre per month, according to the international property consulting firm. The report concluded that although Bangkok rents would continue to rise, the Thai office market offers good value to tenants. London's West End is nine times more expensive, while Hong Kong's rates are five times higher and Singaporean rents are double those of Bangkok. The survey shows that rents for prime office space continue to rise in most large markets, particularly in Asia. London's West End remains by far the world's most highly priced business district. Of the 173 markets surveyed, occupancy costs increased in 119 cities in the last year and decreased in only 24. Much of the global rental growth is in Asia, led by India and China, the world's fastest growing major economies. Elsewhere in Asia, Hong Kong rents jumped 50 per cent to Bt3,493 per square metre per month over the last year. Tokyo, in the Inner Central Five Wards, is the second most expensive place to rent office space in the world, with rents increasing 8 per cent to Bt4,451, while Outer Central costs, are the fourth highest, up 3 per cent to Bt4,042. At Bt1,439, ranked 43rd, Singapore returned to the top 50 after a three-year absence. European cities continued to dominate the top 50 list, led by London's West End where occupancy costs in that district - up 10 per cent since last year - are still 30 per cent higher than the next most expensive sub-market, Tokyo's Inner Central. Greater London has seen rents rise to Bt4,348 per square metre per month, a 7-per-cent increase in the last 12 months.
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