Hong Kong tops the charts as the priciest place to rent a skyscraper.
Data collected from Knight Frank has crowned Hong Kong as the most expensive city to rent a space within a skyscraper. Not surprising considering the cost of living and escalating property prices here. However, what the property firm did reveal is that in Hong Kong it is nearly double that of the second most expensive city: Tokyo. Here the cost is USD 4,900 per square feet as opposed to Hong Kong’s eye-watering USD 8,000 per square feet.
Hong Kong’s impressive figures are result of a distinct lack of space, and thus supply. A recent transaction of a five-story car park for USD 3 billion illustrates how fierce the property market is here. Buildings are readily ripped down and replaced with newer and more efficient versions in a bid to keep up supply. Whereas in Tokyo, the hosts of the 2020 Olympics, there are 45 new skyscrapers in the pipeline.
Coming third in the charts is Manhattan followed by the country’s other bustling city San Francisco. The former is the financial hub of New York which poses challenges to developing skyscrapers thanks to a height restriction that exists. A hurdle for London too meaning skyscrapers are concentrated in certain pockets of the capital, e.g. the City of London. 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.