In the latest Global Office Real Estate Mid-Year Review, which features 170 office markets across the globe, Hong Kong topped the list again despite seeing a 35 percent slide in Class A rent to US$138.08 (HK$1,077.02) per square foot per year in June.

"The rentals were 10 percent higher than those of London's West End, which took second spot in the list," said Simon Lo Wing- fai, Colliers research and advisory director in Hong Kong.

Colliers said there were signs of stabilization in Hong Kong during the middle of the year.

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"Individual hedge funds and legal companies started to look for office spaces in prime quality buildings in the central business district, serving as a positive support in the local market," Lo said.

Central Tokyo at US$101.57 psf ranked second in Asia Pacific and third in the world. After logging a 56 percent decrease to US$55.53 psf, Singapore fell 19 places to 26th worldwide while Shanghai came 39th at US$44.60 psf.

"Office rentals declined broadly, registering a fall of 11.8 percent on average in the region over the past year," said Piers Brunner, Colliers chief operating officer in Asia.

Regional vacancy rates rose 278 basis points to 11.4 percent, which equaled the level in 2005.

The report singled out Shanghai, Perth and Brisbane for recording over 750 basis points of increases.

Vacancy rates in June were 14.1 percent in Shanghai and 5.1 percent in Hong Kong.

Separately, Knight Frank Research said prime retail rents and average price of prime street shops have rebounded 10 percent and 30 percent from respective lows.

Stable mainland visitor arrivals and better-than-expected local retail sales helped prime retail rents to start recovering in May while the loose credit policy of commercial banks and investors' improved risk appetite boosted the price of prime street shops from a trough in February.