According to a report from the world’s largest independent real estate consultancy, the skyscrapers of Sydney’s future are set to generate higher rental return for investors and bring Sydney into the top 10 on one of Knight Frank’s Skyscraper Indexes.
This is because skyscrapers are apparently becoming more cost effective to build and are situated closer to places we live. According to the report, they also limit urban sprawl and can double as vibrant hubs offering shopping, eating and entertainment options beyond office hours.
The latest research from Knight Frank, as documented in the ‘Global Cities: Skyscrapers 2015 Report’, shows that the world is currently in a skyscraper boom and that Sydney, which is already seeing massive skyscraper development in places like Barangaroo, is among those set to enjoy the benefits of dense pockets of giant buildings in city centres.
The research posits that skyscrapers offer the best opportunity for global cities to address the significant economic and geographic challenges facing them and reported five key design trends (as summarised by Knight Frank Australia below) that are driving buildings upwards.
- New technology – Emerging to make the rise of buildings both possible and cost effective.
- Living in the city – Rapid population growth in cities across the globe is creating megacities. For western cities, towers offer a means of matching the popularity of living near work in densely-developed inner cities.
- Business clusters – Rather than technology making businesses spread out further, which was expected, the new wave of digital companies has shown a strong propensity to cluster. This is anticipated to grow in future, which may spur a raft of new skyscrapers.
- Limiting sprawl – The outward spread of cities can create problems of extending transport networks, building on green fields, and imposing longer commutes on staff. It can also create political and municipal funding problems, while skyscrapers reduce the need for sprawl.
- The community city – With towers allowing more people to live in the centre, CBDs no longer become ghost towns outside of office hours, encouraging a weekend and evening economy of shopping, culture and tourism.
Sydney was ranked by Knight Frank seventh among a list of global cities for its high-rise buildings on several measures including its office rents and yields, the spread offered by investment yields compared with national bonds, the number of high-rise buildings built, and each city’s growth prospects.
Hong Kong was ranked at number one globally, followed by New York, Tokyo, London, San Francisco, Singapore and then Sydney.
Read the full report here:
Images: Knight Frank