Rents of prime offices in Asia show sustained growth in the first quarter of 2007 with record increases in most cities, according to a report released on Thursday by CB Richard Ellis, one of the world's leading real estate services firms.

Expansion in the financial services sector provided much of the impetus for the rising offices rents in core districts of Tokyo, Hong Kong and Singapore, three leading international business hubs in Asia, the report said.

In the first quarter of 2007, demand for prestigious office space in Hong Kong's Central Business District continued to remain strong.

Meanwhile, a shortage of prime office space and robust tenant demand drove the average prime office rents of Tokyo 2.7 percent up quarter on quarter.

Singapore's office leasing market also remained active in the first quarter of 2007 in spite of the tight supply situation, thanks to the expansion in the financial sector.

First-tier cities of Chinese mainland will see supply peak in 2007, but major metropolitan areas saw sustained strong demand, with a recorded collective net absorption of 0.41 million square meters in Beijing, Shanghai and Guangzhou.

As China's leading financial center, Shanghai has benefited from the growth of the banking industry, with the average office rent rising by 2.5 percent quarter on quarter.

In India, major cities continued to face an office space supply crunch, with Bombay, Delhi and Bangalore recording double-digit rental growth during the first quarter.

Jakarta and Kuala Lumpur witnessed a strong performance in office markets, while the occupancy levels of Ho Chi Minh City remained at a record high of 97 percents across all grades.

Source: Xinhua