HK of­fice rents 60% higher than in New York

The Star Malaysia - StarBiz - - Foreign News -

helped trig­ger the past two re­ces­sions.

A Fed re­port last week said it viewed fi­nan­cial-sta­bil­ity con­cerns as mod­er­ate, cit­ing com­mer­cial real es­tate, cor­po­rate debt and lever­aged loans among the po­ten­tial is­sues.

“There is a less tra­di­tional kind of over­heat­ing that wor­ries the Fed, which is fi­nan­cial ex­cesses, es­pe­cially non-fi­nan­cial cor­po­rate bor­row­ing,” said Jonathan Wright, an eco­nom­ics pro­fes­sor at Johns Hop­kins Uni­ver­sity in Bal­ti­more and a for­mer Fed economist. “The Fed is acutely aware that the over­heat­ing that ended the last two cy­cles was in fi­nance, not in wages and prices.” — Bloomberg SIN­GA­PORE: Hong Kong’s Cen­tral area has taken the prize for the world’s most ex­pen­sive pre­mium of­fice rents for a fourth year run­ning, ac­cord­ing to global real es­tate con­sul­tant JLL.

Oc­cu­pancy costs – in­clud­ing rent, taxes and ser­vice charges – are 60% higher than New York’s Mid­town and al­most 75% more costly than Lon­don’s West End, JLL’s Pre­mium Of­fice Rent Tracker, which crunches data in the pre­mier of­fice dis­tricts of 61 cities, shows.

If you’re look­ing for some­where cheap to base your busi­ness, best head to Africa.

Of­fice rents in Jo­han­nes­burg are just US$20 per sq ft per year, and not much more ex­pen­sive in Nairobi.

Kuala Lumpur is also pretty cost com­pet­i­tive, as is Manila.

Pre­mium of­fice rents re­fer to the “top achiev­able” in units over 10,000 sq ft in key build­ings in the prime of­fice dis­tricts of each city, JLL said. — Bloomberg

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