SHANGHAI'S Pudong is ranked the world's 39th most expensive office market, whereas Puxi hits 50th place in the latest global rental survey by international property adviser CB Richard Ellis.

That was almost unchanged since a year earlier, when the two areas of the city ranked 38th and 50th, respectively.

Hong Kong ranked 11th, falling out of the top 10 this year.

London's West End is once again the world's most expensive office market, while Moscow climbed to second place, according to the survey released yesterday by CBRE Research.

The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended March 31, 2008. Tokyo's Inner Central Five Wards, Mumbai's Nariman Point and Tokyo's Outer Central Five Wards rounded out the top five most expensive markets.

"Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation," said Raymond Torto, CBRE's global chief economist.

"These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies."

Among the most expensive markets, Singapore and Dubai were newcomers to the top 10. Singapore ranked 9th while Dubai debuted at number 10. Moscow rose four places to second and Midtown Manhattan was still the costliest in North America, ranking the 13th worldwide.

In terms of rent growth, Ho Chi Minh City had the fastest-growing occupancy costs during this period, up 94 percent, followed by Moscow at 93 percent and Singapore at 86 percent, the survey said.

Overall, Europe, the Middle East and Africa dominated the list of markets with the fastest-growing occupancy costs, accounting for five of the top 10 and 19 of the top 50 markets.

In North America, four cities are among the world's 50 most expensive office markets, with Canada's Calgary Central Business District at 42nd, Toronto CBD at 47th and suburban Los Angeles at 48th.

Globally, of the 173 office markets monitored in the survey, 88 percent posted higher occupancy costs in the 12 months to the first quarter of 2008, CBRE said.