Hong kong skyscrapers tower over rest of world

Photo: Sanfamedia.com

When it comes to price, Hong Kong's skyscrapers are towering over the rest of the world - but London is racing to close the gap.

Skyscrapers in the UK capital have seen their rents rise by more than 10 per cent in the last six months alone, fuelled by strong demand from occupiers. Indeed, vacancy rates in the city are now at their lowest since 2001, according to Knight Frank. The agency attributes that partly to a large number of companies relocating across the city from traditional West End locations to snap up supply where available. Indeed, a new wave of London towers have come onto the market following the financial crisis, despite much doubt in the timing of the construction work on the buildings. With the UK economy one of the strongest in the world, more bullish companies are stepping up their appetite and have pushed rents to record high.

San Francisco, home to the ever-growing tech sector, has seen similar growth in its skyscraper values, with rents racing up over 8 per cent, more than other city in the US. Expansion from the traditional haunt of Silicon Valley into the city proper has helped to fuel both demand and price growth.

Nonetheless, Hong Kong still towers over the rest of the world, with a prime rent that is more than $100 more expensive than New York: $255.50 per square foot comparesd to the second placed $153 per square foot. Hong Kong's lead, driven by the restricted space available for property, forcing developers to build upwards, means that even as its rental growth slows to 1.9 per cent, the city remains far ahead of the competition.