Hong Kong

PETALING JAYA (July 22): Skycrapers in Hong Kong are the most expensive commercial real estate assets globally, according to international real estate firm Knight Frank.

In its inaugural Active Capital, The Global Report 2017, Knight Frank has analysed Skyscraper Capital Values, which uses rental values as at 4Q2016 and prime yields as a basis.

“The pricing for skyscrapers in Hong Kong has reached US$8,000 [RM34,342] psf, over 60% higher than tall buildings in Tokyo, where pricing is estimated at US$4,900 psf, as compared to other global cities like Manhattan or New York at US$3,700 psf and London at US$2,450 psf.

“Other Asian cities that are priced above US$1,000 psf include Singapore at US$1,900 sq ft, Taipei at US$1,600 psf and Shanghai at US$1,250 psf,” said the report.

According to Knight Frank, pricing is highest in Hong Kong which reflects the world’s highest skyscraper rents and land scarcity for future development. Similarly, pricing in major financial centres such as Shanghai, Singapore, Manhattan and London is supported by the high demand for space in these buildings.

“Capital values of Asia’s tallest towers showed significant divergence at the end of 4Q2016, with Hong Kong sitting at the top and Mumbai at the bottom of the global rankings.

“In Hong Kong, continued strong demand and a lack of new land supply continues to push values higher, while the structure of the Mumbai office market has tended to see office markets develop outwards rather than upwards,” said Knight Frank head of research for Asia Pacific Nicholas Holt.

Recently, Hong Kong developer Henderson Land has paid US$3 billion for an old five-storey car park, indicating the frenzied state of the territory’s property market.

The price was both a record lump sum and psf for Hong Kong where the sale has set the world’s most expensive city even further apart from its rivals, said Knight Frank.

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