As office rents rose 3.9% qoq to US$122.03 per sq ft per year in 2Q11.
Hong Kong continued to be the most expensive office location in the region in the quarter ending June, after displacing Tokyo for the first time in 1Q 2011, according to Colliers International’s report.
Here’s more from Colliers International:
• More occupiers have expressed their resistance to current market rentals and the pace of rental growth has tapered off. Grade A office rentals increased 4.0% q-o-q to HK$67.81 per sq ft per month in May 2011, compared with 12.7% q-o-q in February 2011.
• The banking and financial industries remained one of the major sources of leasing demand in 2Q 2011. Mainland banks happened to be the key highlight in terms of the number of confirmed deals during the period. In addition, leasing demand attributed to a batch of newly set up hedge funds, private equities and the existing players in the professional sector continued to drive the market during 2Q 2011.
• The prospective pace of rental growth is anticipated to taper off further in the next 12 months, after having accumulated growth of 65% in the past two years. Overall, upgrading and expansion demand are predicted to push average rental upward by another 15% over the next 12 months.
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