A survey conducted by CB Richard Ellis (CBRE) showed that annual occupancy costs in Singapore decreased to US$135.13 per square feet in November from US$139.31 in May, placing the state at the 9th spot in the list of the most expensive places to do business and 13th in the list of office markets with the highest inflation rate.
Singapore became the world’s biggest 12-month increase in office occupancy costs in November 2007, however, it dropped to the third place in May 2008. In the latest ranking the state dropped down to 13th.
Since November 2007, occupancy costs in Singapore increased by 27.8%, compared to 86% throughout the 12-month period ending in May 2008.
Raymond Torto, chief global economist at CBRE, sees a slowing pace in the rate of rental increase worldwide and even downward trends for rents in some markets.
According to the CBRE survey, the highest rate of increase in occupancy costs was seen in Abu Dhabi, United Arab Emirates (94.6% year-on-year). The high inflation rate there is attributed to the dearth of quality office space and strong demand from foreign firms, especially financial institutions, real estate developers and law firms. Ho Chi Minh in Vietnam, which topped the May 2008 CBRE survey, fell to the second spot this November, registering 51.4% yearly increase in occupancy costs.
London’s West End and Moscow are still among the world’s most expensive office markets, followed by the central business district of Hong Kong, the inner central district of Tokyo, and Nariman Point in Mumbai.