Skyscrapers across the globe are achieving some pretty impressive figures.
Hong Kong is in the news again. This time as for topping the charts as the most expensive place to rent space in a skyscraper. This is according to research collected by real estate firm Knight Frank. A crown that comes as no surprise when Hong Kong is one of the most expensive places in the region to live. But most notably the USD 8,000 per square feet it is achieves is way ahead of the second most expensive city: Tokyo. Here tenants are expected to shell out on average USD 4,900 per square feet of skyscraper space.
Hong Kong’s impressive figures are spurred on by a lack of land creating a fierce market. As illustrated by a recent transaction of a five-story car park for USD 3 billion. There is no hesitation in replacing buildings with newer versions in an attempt to keep up supply. A similar story that is occurring in Bangkok. Here many companies are being forced to move out of the CBD due to a lack of new offices in the pipe. Tokyo on the other hand is welcoming 45 new skyscrapers thanks to it becoming the host city of the 2020 Olympics.
Coming third in the charts is Manhattan followed by America’s other bustling city of San Francisco. The former, the financial hub of New York, poses challenges to skyscraper development due to height restrictions in place. A hurdle London faces too. Hence skyscrapers are concentrated in certain pockets of the capital such as the City of London. One of the financial hubs that is home to the ‘Cheesegrater’ which was recently sold for GBP 1 billion showing that interest remains high here despite news of Brexit. Knight Frank gives London fifth position.
Sydney is on hot on the heels of London. Followed by Singapore that achieves USD 1,900 per square foot. Despite attempts to cool the residential market, Singapore remains top on agenda’s for overseas investors. This fuels the commercial market as it remains one of the other region’s powerhouses and financial hubs along with Hong Kong. Boston, Taipei and Frankfurt fall eight, ninth and tenth places respectively.
