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Prime office space in Singapore command the second highest sales price or capital values in the world behind Hong Kong among 31 global cities, according to the latest study by Knight Frank.
Based on US$100 million (S$134.52 million), the amount can purchase 3,529 sq m of prime office space in the Republic, while it can only acquire 1,427 sqm in Hong Kong, said the consultancy.
In absolute terms, prime office space in Hong Kong costs US$70,000 (S$94,164) per sq m, while that in Singapore are valued at US$28,340 (S$38,123) per sq m, making them the two most expensive places to buy such property.
Completing the global top five are Tokyo (3,643 sqm), Paris (3,995 sqm) and the City of London, where US$100 million can buy 4,439 sqm of prime office space
“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, said Darren Yates, Knight Frank’s Head of Global Capital Markets Research.
“These locations have a very constrained supply of land, combined with high population densities and an abundance of successful global companies with an ability to pay higher rents,” he added.
Meanwhile, Knight Frank noted that the ‘theoretical’ amount of prime office space is based on implied hypothetical capital values calculated from the prime rent and yield in each market, and further noted that the figures are indicative only and are not taken from any specific building or transaction.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.