Bangkok--Nov 25--CB Richard Ellis
Office rents in almost all Asian cities have risen dramatically in 2005, according to CB Richard Ellis.
Hong Kong experienced a 58.8 % increase in rents year-on-year in the third quarter of 2005, with an average prime office rent of 1,800 baht per square metre per month.
Bangkok prime office rents rose by 25.5% in the same period, with average prime office rents of 630 baht per square metre per month.
In Hong Kong, rentals are now at levels not seen since the end of the year 2000 before the implosion of the IT bubble. Hong Kong has now risen to become the eighth most expensive city in the world to rent an office.
Rents in all the main Indian markets rose during 2005 with Mumbai seeing a 45% increase bringing, rents up to a level of 1,500 baht per square metre per month. Strong demand from IT/ITES companies is the primary driving force behind most of the Indian office markets.
The global trend towards outsourcing is likely to result in continued growth in demand for the major Indian markets.
In Singapore, rents rose by 16.7% with vacancy rates falling to 8.8% for grade A offices and CB Richard Ellis forecasts that take up for 2005 will be 55% higher than 2004.
The Philippines market, previously was one of the region’s weaker performers, saw rents increase by 36.8% with grade A rents of 400 baht per square metre per month.
Low vacancy rates and high rents are encouraging developers to start construction of new projects in many Asian markets. In Bangkok, CB Richard Ellis believes that rents will continue to rise for the next two years as demand is expected to be around 300,000 square metres per year and new supply will only amount to 200,000 square metres over the next two years.
COUNTRY CITY MARKET RENT Quarter-on-Quarter Year-on-Year
THB/sq.m./ month Change Change
PRC Beijing
Jianguomen 984.24 1.1% 4.0%
Zhongguancun 706.18 -1.2% 0.2%
Finance Street 935.69 5.8% 7.9%
Shanghai
Pudong 913.63 4.8% 14.9%
Puxi 926.87 7.0% 23.4%
Guangzhou 450.19 0.4% 4.2%
Hong Kong 1,822.84 11.7% 58.8%
TAIWAN Taipei 993.07 0.6% 1.8%
JAPAN Tokyo 4,126.76 3.4% 21.8%
SOUTH KOREA Seoul
CBD 988.66 - 0.6%
Gangnam 781.22 0.6% 3.6%
Yeouido 626.74 0.9% 1.2%
COUNTRY CITY MARKET RENT Quarter-on-Quarter Year-on-Year
THB/sq.m./ month Change Change
Gurgaon 322.20 - -3.0%
Mumbai
Nariman Point 1,456.50 20.8% 45.0%
Bandra Kurla Complex 1,253.48 25.0% 42.0%
Bangalore 503.16 - 8.7%
INDONESIA Jakarta 273.65 -5.0% -2.3%
MALAYSIA Kuala Lumpur 520.81 3.5% 3.5%
PHILIPPINES Manila 401.64 7.8% 36.8%
SINGAPORE Singapore 1,279.96 4.3% 16.7%
THAILAND Bangkok 631.15 5.1% 25.5%
VIETNAM Ho Chi Minh City 1,174.03 - 8.4%
About CB Richard Ellis
Headquarter in Los Angeles, CB Richard Ellis is a leading global real estate services firm. With more than 17,000* employees, the company serves real estate owners, investors and occupiers throughout 300 principal offices worldwide. The company’s core services include property sales, leasing and management; corporate services; facilities and project management; mortgage banking; investment management; capital markets; appraisal and valuation; research and consulting. CB Richard Ellis is a public company, listed on the New York Stock Exchange under the symbol CBG.
CB Richard Ellis established an office in Bangkok in 1988 and in Phuket in 2004. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering a full range of services including sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at www.cbre.co.th.
* Includes partner offices
For further information:
Mr. James Pitchon
Executive Director
02 654 1111
Ms. Ngamjai Jearrajarat
Corporate Communications Manager
02 654 1111 Ext. 522 End.