Hong Kong office space has risen to more than treble the capital value of City of London space, Knight Frank has revealed.
The agent said that prime Hong Kong office space is valued at $70,000 (£46,436) per m². London core space is $22,527.
Between London and Hong Kong, Singapore Tokyo and Paris featured in Knight Frank’s 2015 outlook for global commercial property list.
Darren Yates, head of global capital markets research at Knight Frank said: “The availability of land and land values are the fundamental issues that are driving rents and capital values in Hong Kong and Singapore, in particular.”
As a result of tenant demand for offices and falling availability, more rental growth is expected which would push up values further.
At the same time, the company has forecast cross-border property investment will continue to soar this year. It anticipates global investment volumes will rise by at least 10% to over $700bn compared to around $600bn in 2014.
A new wave of Chinese investment as well as Japanese pension funds is forecast to spend more on global real estate.
