Asian Office Rents Top West’s, Survey Says

Office rents in Hanoi and in the Chinese cities of Shanghai and Beijing are more expensive than in New York or London, as emerging markets steam past the West in prices, according to a survey released Friday.

Tokyo offices are still the world’s most costly, but Shanghai space fetches $76.83 per square foot--$30.97 more than London’s City financial area and $15.59 more than in Paris--according to the survey, based on June prices.

The Vietnamese capital of Hanoi also turns out to be more expensive than London, Paris, Rome or Frankfurt, said property consultants Richard Ellis, which conducted the survey.

Beijing office rents also top the prices in those European cities and in New York and Sydney, Australia. Richard Ellis attributed this to a price explosion in emerging markets and the opening to international investment, combined with shortages of the right kind of accommodations.

“In Shanghai and Beijing, shortages of suitable office accommodation are so acute that a number of foreign businesses are operating from hotel rooms,” the company said.