Hong kong home to world's most expensive skyscrapers

The firm's latest Skyscraper Index reveals that the price of skyscrapers in Hong Kong have now hit $6,330 per square foot, 50 per cent higher than the closest competition: Tokyo, where the average value is $4,180 per square foot.

The city's lead in the commercial property market is largely attributed to its restricted geographical area, leaving developers little option other than to build upwards, converting air into land.

James Roberts, head of commercial research at Knight Frank, says that skyscrapers are the "Lamborghinis of the office world", thanks to their price and quality, plus their prestige:

"Upper floors in skyscrapers command higher rents compared to office space in low rise buildings, due to the ego appeal of having an office that towers over competitors. Also, the panoramic views are a strong marketing tool, as a client can be taken into a meeting room offering an aeroplane perspective on the city below. Thus, the premium rents on offer justify the high prices investors will pay to own such a property."

The most notable jump in the index comes from San Francisco, which has sprung ahead of four Asian cities to be ranked 5th in the global league table, having been placed 9th last spring. This acceleration in value has been driven by the rapid growth in California’s tech sector.

While financial and professional firms have traditionally been the main occupants of skyscrapers, Knight Frank says an increasingly varied range of firms are snapping up high rise space. Of particular note, he argues, are digital companies enjoying the post-dot-com boom. Indeed, in 1931, it was the Chrysler Building during the inter-war boom for motoring, while the Pan Am buliding arrived as air travel became a mass market industry.

"As the digital technology revolution continues," continues Roberts, "skyscrapers could offer a quick way of delivering large blocks of office space to keep pace with rapid headcount growth for such firms."

In Europe, London comes out on top, with capital values valued at more than double those in Paris or Frankfurt. London ranked fifth back in the spring, and the rise shows investor confidence in the future prospects of the UK capital’s office market, with its new wave of skyscrapers.