Doubtless you’ve seen prices rising in China, whether from labor costs rising (see Dan Harris from China Law Blog and his series on “The End of Cheap China“), rising rents or from Yum! adding a couple of kwai onto the cost of a chicken burger. (Yeah, we know).  Now there’s a new report out saying that Beijing office rents are the fifth most expensive in the world, remarkably leaping ten places after hitting US$130 per sq ft. That puts it higher than New York, Sydney and Paris and just behind Hong Kong (leading the way at US$244 per sq ft), London, Tokyo and Moscow.

Beijing office rents are white-hot, with prime office space in CBD rising 75% (I’ll say that again: 75%) year-on-year in 2011 and 48% in 2010. While the housing market is cooling at long last, the office sector is evidently roaring ahead. Either way, the idea of Beijing as a cheap hangout must surely be at an end. That isn’t, perhaps, such a bad thing. Beijing is clearly adapting to becoming a major world city, up there with New York, London and Tokyo, and costs will inevitably be comparable. As Beijing residents, we can bask in the halo effect of living in such a great city – though admittedly, that doesn’t help much if your building manager is busting your chops for a 50% rent increase!