The most expensive market in the world remains Hong Kong

According to Knight Frank's Latest and updated Global Outlook Report, Hong Kong will preserve its identity as the arena's maximum expensive office marketplace regardless of rents being forecast to decrease in 2019.

In a tale of halves, Hong Kong Island rents, whilst taking advantage of tight supply, will face growing opposition from areas along with Kowloon where rents are lower. Despite this, Hong Kong Island rents will continue to be properly above the long-term average, by way of almost 24%. Making this the most expensive market in the world.

Melbourne, Sydney Australia

Melbourne and Sydney will see the most important rental increase in 2019 with rents rising 10.1% and 8.6% respectively. Both are experiencing tight deliver in their office markets due to employment boom and relatively low degrees of improvement completions in recent years. Prime rents had been growing swiftly in both markets, up through 13% in Sydney and 6% in Melbourne over the last 12 months.

The Global Outlook Report located that whilst all towns are feeling the effect of slower financial increase and geopolitical dangers, a few are taking advantage of strong call for from tech firms for enterprise space. This is coinciding with fewer important trends reaching crowning glory because the uncertain political surroundings have deterred some developers from building in current years. This is squeezing deliver and pushing up rents.

What experts think

James Roberts, Chief Economist, Knight Frank commented that they believe there's a compelling international case for endured apartment increase throughout the worldwide cities. Tight development pipelines over numerous years have created leasing delivers crunches, especially for offices and logistics assets. This is coinciding with more potent occupier call for, especially from the fast-growing tech sector.

They expect these enhancing expectancies on condo increase to provide extra traders the self-belief to make leveraged buys especially given the delivery troubles observed across worldwide occupier markets."