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Hong Kong skyscrapers are considered as the priciest commercial properties in the world, reported Bloomberg, citing a report from Knight Frank.
Based on their prime yields and rents as of Q4 2016, office towers in the city were valued at US$8,000 psf. This is followed by second-place Tokyo with about US$4,900 psf and New York at US$3,800 psf. On the other hand, Singapore took the seventh place in the rankings at about US$1,900 psf.
“Capital values of Asia’s tallest towers showed significant divergence with Hong Kong sitting at the top, and Mumbai at the bottom of the global rankings,” said Knight Frank Research Head for Asia Pacific Nicholas Holt.
“In Hong Kong, 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.”
The property consultancy noted Hong Kong’s hot real estate sector is emphasized by Henderson Land’s recent US$3 billion purchase of a five-story car park, which it intends to redevelop into an office tower.
This record-breaking transaction further cements the city’s status as the world’s most expensive office market.
Meanwhile, property consultancy Savills estimates that Langham Place Office Tower in Hong Kong’s Mong Kok district could sell for around HK$24.5 billion (S$4.29 billion), a new record-breaking price for an office tower in the city.
This article was edited by Denise Djong.
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