Japanese institute released a survey on office rents in 15 cities globally, with Seoul in South Korea leading the way in increases, and Taipei also ranking among the five cities with rising rents. The largest decrease in rent was seen in Shanghai, followed by Beijing, and then Hong Kong.
According to a report on Nikkei Chinese website on the 5th, the Japan Real Estate Institute released the results of a survey targeting 15 cities globally on office rents up to April. Seoul saw a 2.6% increase compared to the survey six months ago, the largest increase among the surveyed cities. Following Seoul was Sydney, Australia, with a 1.2% increase. Other cities with rising rents in order were Singapore, Ho Chi Minh City, and Taipei.
Cities with stable rents included Tokyo, Osaka, and New York.
Seven cities experienced rent decreases: London, Kuala Lumpur, Jakarta, Bangkok, Hong Kong, Beijing, and Shanghai.
The survey results showed that the largest decrease in office rents was in Shanghai, dropping by 2.3%. Beijing followed with a 1.4% decrease, and Hong Kong ranked third with a 1.3% decline.
The report pointed out that the Greater China region is affected by economic slowdown, leading to weakened office demand. Due to geopolitical risks, the number of Mainland Chinese companies listed in Hong Kong has decreased, which has also had an impact.
The survey targeted 15 major cities in Asia, Europe, and America, conducted twice a year in April and October. It calculates the price and rent per square meter based on new sales and lease contracts for offices, and collects data on increase and decrease rates.
The report quoted economist Kaoru Yoshino from the Japan Real Estate Institute, stating that after the COVID-19 pandemic, office demand in Europe and America did not rebound as in Japan due to factors such as diversified work styles. The Greater China region may continue to adjust due to economic slowdown.
(Source: Central News Agency)