Asia now home to 55% of total number of tall office buildings globally

Asia now home to 55% of total number of tall office buildings globally

With Hong Kong being the city with the most supertall office buildings

Amid observations of the emergence of Asia as a hub for tall office buildings. Hong Kong itself is home to six supertall office buildings with a height over 300 meteres + According to the research report “The Emergence of Asia Supertalls” from CBRE, Hong Kong is followed by Chicago and Guangzhou, both with five supertall office buildings, while rounding up the top five are Dubai and New York with four apiece”

The report noted that in recent years, governments in number of countries in Asia have thrown their weight behind the construction of supertall office buildings.

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Canton Tower, Guangzhou.

CBRE said supertall office buildings are viewed by authorities as a means to enhance the competitiveness of their business environment so their city can establish itself as a financial centre.

The report noted that the Shanghai World Finance Centre and Guangzhou IFC were all constructed in accordance with this strategy.

Here’s more from CBRE:

In other countries, the impact of globalisation and the relocaiton of manufacturing operations to cheaper markets have prompted authorities to reposition their economies and develop the financial sector.

The construction of supertall office buildings has been a key component of this strategy. For example, Taipei 101 was constructed as part of a move to grow the financial industry in Taiwan.

in Kuala Lumpur, the Petronas Tower was built in accordance with the government’s wish to reduce Malaysia’s dependence on the oil and gas industry and develop its financial sector.

Elsewhere, the Burj Khalifa–the tallest building in the world–was built as part of a United Arab Emirates’ government plan to gain more international recognition for Dubai and help support the growth of the country’s services sector and reduce its reliance on the oil industry.

While the development of tall office buildings in Asia began relatively recently, Asia is now home to 55% of the total number of tall office buildings globally.

According to a release from CBRE, China dominates the development pipeline in the supertall building category over the next five years, with the country accounting for 71% of the total future supply of supertall office buildings to be completed during the period, and with its tier II cities accounting for 51%.

Photo Credit: Romain Jacquet-Lagrèze

Photo Credit: Romain Jacquet-Lagrèze

It also noted that because of differentiators such as positive image and branding, building quality, and prime locations, supertall buildings in Asia command a rental premium of between 10 and 40% above the average Grade A rent in the same submarket. However, the report stated:

against this backdrop, there are pitfalls to some of the enthusiasm around supertall buildings, as well as potential concerns of oversupply adding to these concerns are the 150-year correlation between the world’s tallest buildings and economic slowdowns and recessions. For China, there is no reason that correlation will change.

Recent examples of the Skyscraper Index predicting economic downturn include Malaysia’s Petronas Towers, completed in 1996 just sixteen months before the Asian financial crisis hit, halving the value of the Malaysia stock market. Two months after the completion of Dubai’s Burj Khalifa in October 2009, the country was struck by a massive debt crisis related to the global recession.

romain-photo5

Photo. Credit: Romain Jacquet-Lagrèze

According to the report by CBRE:

In recent years, governments in number of countries in Asia have thrown their weight behind the construction of supertall office buildings, defined as a building with a height of over 300 meters, as a way to enhance the competiveness of their business environment and establish their city as a financial center.

Shanghai World Finance Centre and Guangzhou IFC were both constructed in accordance with this strategy.

In Asia, the impact of globalization and the relocation of manufacturing operations to cheaper markets have prompted authorities to reposition their economy and develop their financial sectors.

The construction of supertall office buildings has been a key component of this strategy. For example, Taipei 101 was constructed as part of a move to grow the financial industry in Taiwan whilst in Kuala Lumpur the Petronas Tower was built in accordance with the government’s wish to reduce Malaysia’s dependence on the oil and gas industry and develop its financial sector.

Photo Credits: http://www.rjl-art.com/index.php

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