Rents For Bangkok Skyscrapers 10 Times Cheaper Than Hong Kong
Skyscraper rents in Bangkok are 10 times cheaper than in Hong Kong, according to new research from Knight Frank. The company’s Global Cities: The 2018 Report includes the Skyscraper Index which examines the rental performance of commercial buildings over 30 stories across 23 global cities. One of the key findings of the index was the affordability of skyscraper rents in the Thai capital which were far cheaper than several other major cities in Asia.
“Despite reaching record highs, office rents in the Thai capital are just 10 per cent of those in Hong Kong, and less than half of those in Singapore. However, Bangkok’s prime office rents saw a slight dip in growth over the 1st half of this year, but a rebound by year’s end is expected as new supply is absorbed,” says Marcus Burtenshaw, Executive Director and Head of Commercial Agency Department, Knight Frank Thailand, Co., Ltd.
Hong Kong skyscrapers have the highest rents in the world at USD304 per square foot, reports Knight Frank. This is the 4th year in a row in which Hong Kong has topped this list. The gap between rents in the tallest buildings in Hong Kong and the rest of the world continues to grow at a rapid pace. Rents in tall towers in Hong Kong are now 88 per cent higher than second-placed New York, a jump of 12 per cent when compared to last year.
“Demand from Chinese mainland institutions has been a major contributing factor in driving rents upwards in skyscrapers clustered around Central on Hong Kong Island. Looking forward, with continued interest from occupiers for tall towers offering the best panoramic views, we expect demand for skyscraper office space across the Asia Pacific region to continue to remain robust,” says Nicholas Holt, Asia Pacific Head of Research, Knight Frank.