Skyscraper Index Going Strong in China

More bifurcation in Chinese real estate coming as small cities overbuild commercial real estate.

Looking Up: Chinese Cities Race to Build Skyscrapers

From 2009 to 2012, an average of 22 buildings were completed every year. The number soared to 37 in 2013 and 58 last year.

Experts say the trend may well continue. CBRE Group, a real estate services provider, said in a research report that 60 percent of all new buildings taller than 150 meters finished from 2014 to 2018 will be in China.
By the end of 2018, the firm predicted, China will boast 154 office buildings at least 300 meters tall. The United States will have only 23 and the UAE 10.

Five Chinese cities will be atop the list of regions with the most such buildings under construction. They are Shenzhen (18), Shenyang (10), Chongqing (9), Tianjin (8) and Nanning (7).

Local governments regard skyscrapers as important because officials think they can improve a city's look and make it more commercially competitive by attracting companies and financial institutions to open offices in the structures, said Chen Zhongwei, head of research at CBRE's arm in China.

However, CBRE warned that many cities are too small to create enough demand for the office buildings they are developing.