SEOUL, June 4 (Korea Bizwire) – A recent study found that the rate of increase for office rents in Seoul was the second-highest in Asia, among 19 major cities.
According to a study conducted by major U.K. real estate consulting corporation Knight Frank, rents in Seoul during this year’s first quarter increased by 2.6 percent compared to the fourth quarter of the previous year.
The city with the highest rent growth rate was Tokyo, at 3.4 percent. Knight Frank predicted that the growth of rents in Tokyo will continue for the next year.
Japanese newspaper Nihon Keizai also suggested that businesses are experiencing higher profits, which has prompted them to invest, but the ratio of empty offices in Tokyo has consistently been low. This situation causes office owners to raise their rents, the newspaper concluded.
Ranking third was Beijing, China, in which rents increased by 2.5 percent compared to the preceding quarter.
Despite the increases in Seoul, Tokyo and Beijing, several other cities saw rents actually decrease due to the construction rush at city centers and slower economic growth. Singapore showed the biggest drop with rents falling by 4.4 percent, while rents decreased by 0.4 percent in Kuala Lumpur, Malaysia.
By Esther J. Kim (email@example.com)