Hong Kong beats Tokyo as most expensive office location in Asia Pacific

Hong Kong's Grade A CBD rents posted the strongest QoQ increase of 11.9 per cent in 1Q 2011.

According to Colliers International, this surpassed Singapore's QoQ rental growth of 8.2 per cent which ranked third and Tokyo's which contracted 2.4 per cent.

The overall tenancy demand for prime office space remained strong in 1Q 2011. Largely attributable to the sustained expansionary demand among existing tenants, and the prevailing trend of limited supply in the marketplace, average Grade A office rentals increased 12.8% QoQ during the period.

With the continued surge of rentals, more professional companies, with floor area requirements ranging from 5,000 to 10,000 sq ft, were increasingly reluctant to pay the asking rentals currently fetching above HK$100 per sq ft per month in Central. A number of medium-sized tenants have been migrating to the adjacent business districts such as Wanchai and Causeway Bay, where rentals remain relatively low.