Research released from CBRE states that Bangkok office space is one of the cheapest in the world.
Despite Bangkok’s office space increasing 6.6 percent year-on-year, it is still one of the cheapest in the world according to data just released by CBRE. Ranking 109 out of 126 cities surveyed, the average rent in Bangkok is THB 959 per sq m.
“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,” reported Mr Nithipat Tongpun, head of office services, CBRE Thailand.
Hong Kong central topped the chart being the most expensive at THB 9,140, followed by London’s West End (THB 8,261) and Beijing’s CBD (THB 5,720). Other Asian cities to make the top ten include Tokyo, New Delhi and Shanghai.
“With low vacancy rates and lack of prime space in Hong Kong, this has allowed landlords to push rents upwards,” commented Dr. Henry Chin, head of research, CBRE Asia Pacific. “Mainland Chinese financial firms have been seeking prime office space in Hong Kong to support their overseas business expansion and to cater for the clients’ needs to manage their capital outside China.”
Prime offices occupancy costs have increased 2.4 percent year-on-year, but in Asia Pacific this figure is 2.7 percent. As pensions and insurance markets continue to grow, the service industry in Asia it is expected to gather further momentum contributing to the rising costs of office space.