The world's most expensive office markets has been revealed, with Hong Kong outpacing New York and London for a third consecutive year.
CBRE's annual Global Prime Office Occupancy Cost report, which outlines rent for prime office locations in 120 key markets, revealed that global occupancy costs rose 2.4 per cent in the 12 months ending June 2018, an increase on the 1.9 per cent growth rate of the previous year.
Despite a mild slowdown in the global economy, global growth stimulated robust leasing activity in the Asia Pacific (+1.7% increase) and EMEA (+2.0%) with occupancy costs in the Americas also increasing (+3.2%).
Nine of the top 10 most expensive locations have remained the same as last year, with London (City) returning after a brief hiatus.
Helped by the appreciation of sterling against the U.S. dollar, London (City) displaced Shanghai (Pudong) for the tenth position, reflecting robust professional services activity and relatively limited new supply.
London (West End) has also seen a strong rise in costs, retaining the second position, with a substantial construction pipeline of 510 towers that will transform the city over the next decade.
Sydney managed 20th position with prime occupancy costs of $102 per square feet per year.
CBRE also revealed the biggest movers in both directions.
Durban, South Africa, saw the largest 12-month increase, with occupancy costs in local currency rising 21.4 per cent due to strong growth in the finance, technology and e-commerce sectors.
Of the top 20 cities that experienced the largest increases over the past year, Melbourne ranked 13, experiencing a 10.8 per cent rise in occupancy rates.
Dubai, U.A.E., on the other hand, saw the largest year-over-year decrease, with occupancy costs falling 15.4 per cent possibly due to an excess inventory.
Auckland also saw a decrease of 0.4 per cent, sitting at 20th position, due to strong demand for new developments in the city's fringes and outer-suburbs.
Related: What Are the World's Most Expensive Cities?