London still has the fifth most expensive skyscrapers in the world - but office rent growth in London's towers is slowing

Emma Haslett
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Inside The City Of London's New Landmark Skyscraper
London's high-rise offices are still the fifth most expensive (Source: Getty)

Property price growth across the capital may be screeching to a halt, but London's skyscrapers are still among the world's five most expensive places to rent an office, it turns out.

Knight Frank's Skyscraper Index, which ranks global cities by how expensive it is to rent office space in their towers, showed London's high-rise offices cost $104.56 per sq ft. That's behind San Francisco, at $113 per sq ft, Tokyo, at $134.39 per sq ft, Manhattan, at $159 per sq ft - and Hong Kong, whose high-rise rents are almost double its nearest rival, at $302.67 per sq ft.

However, the figures also suggested price growth in the capital has tailed off, with prices staying flat in the six months to the end of 2016.

Read more: Here's why City office rents are still sky-high

Australian cities experienced the biggest price growth, with prices in Melbourne growing 11 per cent and prices in Sydney growing 10.1 per cent. Meanwhile, skyscrapers in China were losing out, with prices falling in Shanghai and Beijing by two per cent and 1.3 per cent respectively, while in Singapore, rents fell 4.2 per cent.

“Despite uncertainty following the Brexit-vote, rents in London’s skyscrapers remain significantly higher than those in other major European cities," said Dan Gaunt, head of Knight Frank's City Agency.

Indeed, the finance sector is one of the capital's biggest occupiers of tall buildings - and with London playing host to 78 per cent of all EU currency trades and 74 per cent of derivative trades, that is unlikely to change.

"Demand for space in the capital’s landmark tall buildings shows little sign of diminishing and we see rents remaining at their current level through 2017."

Read more: One new London skyscraper was started each week last year

City Price per sq ft Six-month change
1 Hong Kong $302.67 0.6%
2 NYC (Manhattan) $159.00 0.6%
3 Tokyo $134.39 1.1%
4 San Francisco $113.00 0.0%
5 London $104.56 0.0%
6 Sydney $97.34 10.1%
7 Boston $77.00 0.0%
8 Shanghai $67.81 -2.0%
9 Singapore $63.64 -4.2%
10 Chicago $61.00 3.4%
11 Beijing $59.84 1.3%
12 Paris (La Defense) $53.83 0.0%
13 Frankfurt $52.85 5.9%
14 Mumbai $52.67 0.0%
15 Melbourne $50.89 11.0%
16 Toronto $49.74 4.7%
17 LA $46.00 0.0%
18 Dubai $43.55 0.0%
19 Taipei $38.59 0.0%
20 Madrid $36.41 0.0%
21 Seoul $29.93 -0.5%

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