Pricing for Hong Kong skyscrapers highest in the world: Report
Pricing for skyscrapers in Hong Kong has reached $8,000 per sq ft, over 60 per cent higher than tall buildings in Tokyo, where pricing is estimated at $4,900 per sq ft. Mumbai commands $600 per sq ft
Skyscrapers in Hong Kong are the most expensive commercial real estate assets in the world, according to new analysis from global real estate advisor Knight Frank.
Pricing for skyscrapers in Hong Kong has reached USD 8,000 per sq ft, over 60 percent higher than tall buildings in Tokyo, where pricing is estimated at USD 4,900 per sq ft, according to Knight Frank’s analysis, which uses rental values as at the fourth quarter of 2016 and prime yields as a basis.
Pricing of tall buildings in Mumbai is estimated at USD 600 per sq ft, it says.
Planning To Buy A House? Here are 10 Things To Keep In Mind
Knight Frank has analysed Skyscraper Capital Values for the first time as part of its inaugural Active Capital report.
Hong Kong developer Henderson Land recently paid USD 3 billion for an old five-storey car park, indicating the frenzied state of Hong Kong’s property market. The price was a record lump sum for Hong Kong and a record also per square foot. The sale sets the world’s most expensive city even further apart from its rivals.
The top five of Knight Frank’s Skyscraper Capital Values Index is completed by Manhattan, where tall buildings have an estimated value of USD 3,700 per sq ft, San Francisco (USD 2,500) and the City of London (USD 2,450).
“For the first time we have comparatively analysed the capital value of the world’s skyscrapers, which are seen by many as a bellweather for the commercial property market as a whole,” says Andrew Sim, Head of Global Capital Markets, Knight Frank.
“Pricing is the highest in Hong Kong which reflects the world’s highest skyscraper rents, and the lack of available land for future development. Similarly, pricing in major financial centres such as Shanghai, Singapore, Manhattan and London is supported by the high level of demand for space in these buildings from financial services businesses, in particular,” he said.