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Taipei premium office rents 45th-highest worldwide

2018/12/10 21:06:45

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Taipei, Dec. 10 (CNA) Taipei is in 45th position in rent rankings of premium office space worldwide, according to U.S.-based real estate agency Jones Lang LaSalle (JLL).

In JLL's latest Premium Office Rent Tracker, the average rents in Taipei's Xinyi District totaled NT$6,165 (US$199.5) per ping (one ping equals 3.3 square meters) per month, the 45th-highest among the 72 sub-markets listed in the report.

The average rents of Grade A offices in Taipei's Xinyi District were the 18th-highest in the Asia-Pacific region, according to JLL.

It was the first time for a city in Taiwan to be included in JLL's Premium Office Rent Tracker.

Hong Kong's Central district took the top spot in the premium office rent rankings with the average rent hitting NT$31,575 per ping per month, according to the report.

New York's Midtown came in second with average rents for premium offices at NT$19,804 per ping per month, ahead of London's West End (NT$18,216), Beijing's Finance Street (NT$17,565) and New York's Midtown South (NT$17,002), JLL said.

In the first nine months of this year, office rents worldwide rose 3.6 percent from the previous year, with demand for office space largely coming from the technology and financial sectors. Tenants in the sharing economy, who are prepared to share office space with others also boosted demand worldwide, JLL said.

In the Asia-Pacific region, JLL said demand for office space was stronger than in the U.S. and European markets, as the sharing economy has been becoming popular, particularly in first-tier cities in the greater China area and India.

As for Taipei, Liu Chien-yu (劉建宇), a manager with JLL Taiwan, said the vacancy rates of office space in some of the business districts in the city have fallen below 5 percent. Liu said he expects rents in Taiwan's Grade A offices to rise 2 percent-3 percent year-on-year in 2018.

(By Wei Shu and Frances Huang)