LONDON, Dec 18 — London’s West End replaced central Hong Kong as the world’s most expensive office property market, broker CBRE Group Inc. said.

Occupancy costs, which include rent, local taxes and service charges, climbed 14 per cent to US$259 (RM843) a square foot in London’s West End, the Los Angeles-based broker said in a statement today. Rates in central Hong Kong dropped 4.7 per cent to US$234 a square foot.

Rents are climbing in London’s West End as the UK economy improves. Regulations protecting older buildings and preventing high-rise construction has created a shortage of office space in the district, fuelling rent increases.

Occupancy costs in central Hong Kong, which has more empty workspace than other parts of the city, declined as companies were reluctant to commit to office moves, CBRE said.

Global occupancy costs climbed 2.2 per cent during the year through September, led by the Americas, which climbed 4.6 per cent, according to the statement. Occupancy costs in the Asia Pacific region increased 3.2 per cent. In Europe, the Middle East and Africa they rose 0.4 per cent. — Bloomberg