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

Despite relatively recent development.

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%.

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 said, against this backdrop, there are pitfalls to some of the enthusiasm around supertall buildings, as well as potential concerns of oversupply.

Here's more from 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.