Perth seventh most expensive CBD office market in the world, Sydney falls to 10th: Knight Frank

On the back of the mining boom, Perth has come from nowhere to rank as the seventh most expensive city in the world to rent prime office space, above Sydney, which has fallen from eighth to 10^th spot, according to new global figures from Knight Frank. 

A square metre of Perth CBD office space costs just under €720 ($897) per year,while a square metre of Sydney CBD office space costs €687 ($857). 

Perth is a new entrant in the top 10 “after seeing strong rental growth on the back of demand generated by Western Australia’s booming resources sector and the falling availability of prime space,” says Knight Frank. 

Brisbane ranked 15^th on the list (down from 14^th) while Melbourne’s ranking has moved up from 23^rd to 21^st. 

Outside of Australia, Central Hong Kong overtook London’s West End as the location with the highest prime office rents in the world during 2011, following rapid rental growth in the first half of 2011. Rents in the fourth quarter of 2011 were up 28% on 12 months earlier. 

However, with office demand weakening, Hong Kong grade-A rents are forecast to soften in 2012. 

Prime office rental growth in London slowed in 2011, after an exceptional increase of 31% was recorded in 2010, says Knight Frank. 

The top 10 is completed by the major established financial centres of Paris, Singapore, Geneva and Moscow.

Global CBD office rents, Q4 2011

 Source: Knight Frank