In this world where everyone is in the race of getting ahead from one another, every market, including the business market, is facing immense competition. Businessmen from all over the world are in this battle of getting ahead ofeach other in order to create a name in the market and earn more profits.
However, in the past few years,business market has seen a lot of changes. Numerous events have occurred in the recent past that have resulted in the shift of rankings in the business world. However, there are some things that have remained constant just like Hong King’s office market as it is still at the top this year like past few years.
It includes all the daily livingexpenses; the taxes we pay and the service charges. The country has beaten other countries like London which got the second rank in this survey by CBRE Group. It is for the third time in a row that Hong Kong has gained the top spot in these rankings. It is because of this fact that there are many Chinese investors who are willing to do business with Hong Kong and earning profits.
It was reported that Swire Properties have sold their stakes in two different Hong Kong towers to a Hong Kong national businessman. Its price on which the deal was signed was around HK$15 billion, which is equal to 2.6 billion.
Midtown Manhattan was not able to make it in the top five list this year. It was reported last year that Manhattan was at the third rank, boosting up its position from ninth in 2016. However, this year Manhattan was with Dubai and Shanghai onthe list of top decliners.
On the other hand, the businesses that are into selling prime office space in Midtown are paying more than they have ever paid. They are paying USS$172 for a square foot. The price has increased from last year. These includefamous places such as Empire State Building.
If we look internationally in the previous year, prices of the prime office space have increased up to 2.4 percent. It happened because of the demands of the top gainers who are the occupants of finance, technology, ande-commerce which includes countries like Durban, Bangkok, France, Marseille, Vancouver, andOslo. Downtown Vancouver is still at the top, America’s occupancy cost has also increased by 3.2 percent.
The occupancy costs of Europe, Africa, andMiddle is increased by 2 percentwhereas the Asian-Pacific got a gain of 1.7 percentof gain from it. According to the CBRE Global Chief Economist Richard Barkham, it was for the first time the in the current economic cycle that the growth of all the countries is above than their normal position. He also added that America is still the country which has overall increase in their costs although their occupancy cost has fallenslightly as compared to the previous year.
He also mentioned that they are expecting to see a growth of 2 percent in the international costs of office occupancy next year.
https://www.straitstimes.com/business/property/hong-kong-has-worlds-priciest-office-market-survey
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