New York, HK offer world's lowest office yields

Sydney

HONG Kong and New York offer the lowest returns for offices among the world's major markets even as prices increase because of demand for high-quality properties, according to broker Savills plc.

Grade-A commercial properties in Hong Kong's central business district yielded 2.85 per cent and New York's 3.29 per cent after excluding tenant incentives, the Savills/Deakin University World Office Yield Spectrum, released on Monday, showed. San Francisco and Singapore had the highest effective yields, at 5.39 per cent and 4.85 per cent respectively.