Office Rents in Asia-Pacific

Sydney's office infrastructure is of the highest quality. Prime office space offers flexible layouts and large floor plates, multi-zoned air conditioning, security access, car parking, short waiting intervals for lifts and pleasant views.

Sydney continues to offer lower rental rates for prime office space than many other Asia Pacific business centres. Annual rental costs for Grade A office space in the Sydney CBD are less than one fifth of those in Tokyo and Hong Kong, a third of those in Singapore, and over half of those in Mumbai. Between 2007 and 2008, office rents in the Sydney CBD and non-CBD locations have experienced the smallest rises in rental costs compared to other major cities in the Asia Pacific Region, reinforcing Sydney’s attractiveness as an affordable business destination.

Office rent rose by approximately 14% over 2008 for Sydney compared to 247% for Hong Kong, 73% for Tokyo, 72% for Singapore, 43% for Taipei and 40% for Beijing.

Sydney’s non-CBD office locations offer an attractive and reasonably priced alternative to Sydney CBD office space. Locations such as Parramatta and North Ryde offer office space between 50% and 60% of the rental price of Sydney CBD offices. Non-CBD locations are closely linked to the Sydney CBD through easily accessible transport infrastructure.


Rental and capital values of office space (1) - Asia Pacific cities, 2008 (A$ per sq. metre)

City

Annual gross
face rent (2)

Capital
value (3)
Hong Kong - Core Central 3,854 73,710
Tokyo - Central Five Wards 3,778 107,931
Singapore 2,129 32,258
Mumbai - CBD 1,724 11,891
Beijing - CBD 558 7,441
Taipei 419 87,400
 
Sydney:
CBD - Premium (4) 896 12,093
CBD 693 8,464
North Sydney 556 6,007
Crows Nest / St Leonards 481 5,187
Chatswood 471 4,212
Parramatta 405 4,036
North Ryde 369 3,951


Footnotes:

1 Grade A properties (greater than 10,000 sq. metres in size)
2 Annual total indicative rent paid over the initial lease term including outgoings and government taxes, i.e. total occupancy cost
3 Capital value is based on the indicative gross face rent and indicative initial yield
4 Premium properties (greater than 30,000 sq. metres in size)

Source: CB Richard Ellis Global Research and Consulting (Asian Cities September Quarter 2008, Sydney Cities December Quarter 2008)