DESPITE reaching record highs, office rents in the Thai capital are just 10 per cent of those in Hong Kong, and less than half of those in Singapore.
However, Bangkok’s prime office rents saw a slight dip in growth over the first half of this year, but a rebound by year’s end is expected as new supply is absorbed, according to Knight Frank’s the fourth edition of global cities:The 2018 report.
The report looks into the continuous trends in real estate across 40 Global Cities, equipping occupiers and investors with insights for future real estate decisions. The report features the Skyscraper Index which examines the rental performance of commercial buildings over 30 storeys across 23 Global Cities.
Knight Frank Thailand Co Ltd’s executive director and head of commercial agency department Marcus Burtenshaw said that Hong Kong’s skyscrapers continue to command the highest rents in the world at US$304 per square feet. The gulf between rents in the tallest buildings on Hong Kong Island and other markets continue to widen – this is evident with the tall towers in Hong Kong being 88 per cent higher than second-placed New York this year, compared to 76 per cent last year.
This is followed by Tokyo at US$140 per square feet. Completing the top 5, skyscraper rents in San Francisco have risen to $117 per square feet, ahead of London at US$110 per square feet.
The Skyscraper Index also shows Toronto’s skyscrapers are experiencing the highest rental growth, rising 11.9 per cent in the first half of the year to US$58 per square feet.
Over in the pacific, above average demand and tight vacancy rates have driven Australia’s skyscraper rents upwards.