Bangkok--Nov 25--CB Richard Ellis (Thailand)
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.
For more information please contact:
Mr. James Pitchon
Executive Director 02 654 1111
Ms. Ngamjai Jearrajarat
Corporate Communications Manager
02 654 1111 Ext. 522 End.