The office market in Hong Kong recovered more quickly from the economic downturn than its counterparts in New York and London, new research has revealed. According to the CB Richard Ellis (CBRE) report, the Asian city saw its prime office rents increase by 40 per cent by the end of the first quarter of 2011.
Meanwhile, both the New York and London markets were slower to bounce back, with the US city only recording an upturn at the start of 2011. Meanwhile, the British capital experienced a recovery in 2010, before seeing demand drop off at the beginning of this year.
CBRE's global chief economist Dr Raymond Torto explained that the office market in Hong Kong is outperforming other regions due to the global economy changing to be weighted more heavily in favour of Asia. "This shift is likely to continue to drive differences in office market performance in the world's leading financial centres," he stated.
Asian office developments may therefore become targets for property investment portfolios, although the appeal of London and New York may still continue. The Knight Frank London Lettings Index May 2011 revealed that the UK's financial hub saw prime central letting volumes rise seven per cent year-on-year, with the market driven by tenants from Europe.