Perth occupancy costs surge 20%

Occupancy costs in Perth have surged more than 20 per cent over the past year with the city recording the second fastest growth rate in the world, new figures show.

In the latest Global Office Occupancy Costs survey, released bi-annually by CB Richard Ellis, Perth was beaten by Marseilles in France where occupancy costs jumped 30.4 per cent in year to the end of March 2009.

Perth booked a 20.2 per cent increase.

According to CBRE, occupancy costs in Perth were now at $959 per square metre, the most expensive in the Asia Pacific region.

CBRE executive director for global research and consulting Kevin Stanley said all of the growth in Perth had taken place in 2008.

"While Perth was the most expensive market in this region - and 30th in the international rankings - office rents were now falling and could decrease by 50% in this cycle, having grown by around 120% in the last cycle," he said.