Hong Kong skyscraper office rents still the highest in the world
Office rents in Hong Kong's skyscrapers remain the world's highest at US$250.50 a square foot a year, according to property consultant Knight Frank.
Skyscraper prime office rents in New York have shot up 20 per cent to US$150 per square foot, making it the second-most expensive city, followed by US$124 per square foot in Tokyo. The survey defines skyscrapers as buildings more than 350 ft high.
In terms of rent rises, Hong Kong was third-fastest, with a year-on-year gain of 11.3 per cent in the second half of last year, trailing New York and Frankfurt, where rents rose 13.2 per cent.
"Grade A office rents in the core areas of Hong Kong are expected to rise a further 5 per cent this year due to limited supply," said David Ji, the head of research and consultancy for greater China at Knight Frank.
JLL head of research Denis Ma said monthly rents at Two International Finance Centre - the tallest building in Central - were HK$130 to HK$155 a square foot, depending on the office size.
Ji said grade A office rents in Beijing, Shanghai and Guangzhou were, however, expected to fall as abundant supply would come on stream this year.
"This is reflected in the ranking of these first-tier Chinese cities, with Shanghai ranking only 10th globally, and Beijing falling out of the top 10," he said.
In 2009, there were 19 skyscrapers in the world that were taller than 1,000 ft, the report said. Today, there are 79, with 40 per cent in China.
"The expansion upwards in the major Chinese cities has been a remarkable phenomenon over the past decade," said Nicholas Holt, the head of research for the Asia-Pacific at Knight Frank. "The fact that 40 per cent of skyscrapers in the world are in China underlines the growing importance of the country's economy on the world stage."