Research from CBRE revealed that Bangkok is now one of the cheapest-priced office markets in the world. On the other end of the spectrum, Hong Kong was ranked as the costliest office location with cities in Asia continuing to dominate the list of the world’s most expensive office locations, according to CBRE Research’s latest Global Prime Office Occupancy Costs survey.
It was noted that the average rent for prime Grade A offices in Bangkok’s CBD increased by 6.6 percent year-on-year, a figure that was among the top-25 annual rental increases worldwide. However, the Thai capital still finished in 109th position out of 126 cities surveyed and this means it is one of the cheapest office markets in the world with an average prime Grade A rent per sqm./per month some 9.5 times cheaper than Hong Kong Central’s district, which is the most expensive market in the world.
“Bangkok office demand has remained strong despite the weak economy and this, combined with the limited amount of new space completed, will continue to push up rents,” Nithipat Tongpun, head of office services, CBRE Thailand, said in a press release.
Prime office occupancy costs in the Asia Pacific region continue to increase, rising 2.7 percent higher than the rest of the world y-o-y. However, there were a few notable Southeast Asian markets that recorded rental rate decreases such as Singapore and Jakarta.
“We expect the global economy to keep growing, and the global service sector, the primary occupier of prime office properties, will continue to expand through periods of volatility,“ Richard Barkham, global chief economist, CBRE, stated. “Since inflation is low, the growth in prime office occupancy costs is significant for both users and investors.”
Hong Kong’s Central market topped the most expensive list followed by the West End in London and Finance Street and the Central Business District in Beijing. West Kowloon in Hong Kong rounded out the top five while Tokyo, New Delhi, New York and Shanghai all made the top-ten.
Image: AIA Sathorn Tower, one of the Grade A office buildings in Bangkok.
