Hong Kong is the most expensive city in the world to rent business and residential space, according to a report by Savills Plc.
New York displaced London as the world’s second-most expensive city in the first half of 2013, the World Cities Review, which measures costs in the world’s 10 leading cities, released today showed. New York was ranked fifth at the beginning of 2010, the London-based property broker said.
Hong Kong’s home prices have more than doubled since early 2009 to a record, raising concerns of an asset bubble and stoking public discontent. The city also has the world’s most expensive retail rents and its Central business district was the costliest district to rent an office until it was overtaken by London’s West End at the end of 2012, according to Cushman & Wakefield Inc.
It would cost $1.63 million per year for a 14-person team to set up in Hong Kong, the most expensive, according to Savills Executive Unit, a core business unit measure the broker uses to compare costs across cities. New York came second with $1.55 million and London third with $1.53 million, according to the report. Total costs are calculated for two teams of seven people each, one located in a prime financial location, while the other is in a secondary area, Savills said.
Singapore offered businesses locating there the best-value accommodation in relation to the size of its economy, Savills said in the report.