Interest remains at an all time high for skyscrapers across the world.
The top ten chart as revealed by Knight Frank for the most expensive place to rent within a skyscraper will no doubt spur on Vietnam’s commercial market further. Ho Chi Minh City and Hanoi generate some of the best rental yields globally at a very affordable price tag. Especially if compared to Hong Kong that triumphs Knight Franks’ leader board. 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.
A lack of land spurs on Hong Kong’s rents. The market remains competitive as demonstrated by the recent purchase 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. Tokyo on the other hand is welcoming 45 new skyscrapers thanks to it becoming the host city of the 2020 Olympics.
Manhattan makes the top three in third position. Followed by America’s other metropolis of San Francisco. The island in New York is the city’s financial hub. Development is restricted due to height restrictions in place. Something that the UK’s capital faces too. London’s skyscrapers are thus concentrated in pockets across the capital that include Canary Wharf and the City of London. The latter which is the home to the ‘Cheesegrater’. A skyscraper that recently sold for GBP 1 billion showing that interest remains high here despite news of Brexit. London falls into fifth place in Knight Frank’s charts.
Australia’s Sydney is in hot pursuit of London. Then Singapore makes an entrance in seventh position achieving 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.