Bangkok a top-five bargain for offices

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Bangkok a top-five bargain for offices 
Bangkok Post: 28 Jan 2010
Bangkok a top-five bargain for offices

Bangkok remains among the five cheapest locations for office costs in the world, according to a survey by the Singapore-based international property adviser DTZ Debenham Tie Leung.

The 13th annual Global Occupancy Cost Survey 2009 found that Bangkok ranked 112th globally as measured by office costs per workstation, at US$2,580 per workstation per year, a 5% decrease from 2008.

The report is a guide to total office occupancy costs in 116 business districts in 49 countries and territories. Bangkok also ranked fifth-lowest in the 2008 global survey.

Four other business districts in Asia-Pacific were at the bottom of the rankings. Manila (Ortigas) was the least expensive at $1,490, followed by Indonesia's Surabaya at $1,490, Chennai at $2,560 and Manila (Makati) at $2,570.

Bangkok's occupancy cost per workstation is forecast to grow by 1.05% to $2,690 in 2013 from $2,580 in 2009 - a lower rate of growth than for Hong Kong (8.82%), Beijing (3.75%) and Kuala Lumpur (3.09%).

But Singapore will continue to see a decrease in occupancy cost per workstation of 1.83% to $7,840 in 2010 from $8,440 in 2009. This is triggered by weak demand and a substantial amount of new supply.

Although losing its global top ranking to London's West End and experiencing a 9% fall in occupancy cost per workstation, Tokyo remained Asia-Pacific's most expensive location at $20,960, followed by Hong Kong at $16,970, which is expected to pass Tokyo by 2013.

Asia-Pacific is forecast to experience the strongest regional growth of 2% in occupancy costs over the next four years, with the emerging markets expected to return to strong growth in the near term.

Occupants can expect to make some of the greatest savings going forward in Singapore, Chennai and Shenzhen, where occupancy costs are forecast to continue on a downward trend.


http://www.bangkokpost.com/business/economics/31883/bangkok-a-top-five-bargain-for-offices