Skyscrapers in the Lujiazui financial district in Shanghai. Chongqing, one of China's four municipalities, launched the Commercial Cluster of Chongqing Tiandi on Wednesday, with the tallest building in the compound reaching 468 meters. [Photo/Bloomberg]

Skyscrapers around China are competing in height despite a gloomy picture for property markets across the country.

Chongqing, one of China's four municipalities, launched the Commercial Cluster of Chongqing Tiandi on Wednesday, with the tallest building in the compound reaching 468 meters.

The total investment in the commercial cluster is about 20 billion yuan ($3.2 billion), according to the Shanghai-based Shui On Land Ltd, the developer.

Wuhan, the capital of Hubei province, kicked off the construction of the 606-meter Wuhan Greenland Center at the end of 2010.

The skyscraper in Chongqing, with more than 100 floors, will join the ranks of the world's tallest buildings, dwarfing TAIPEI 101 in Taipei, Jin Mao Tower in Shanghai and The Petronas Twin Towers in Kuala Lumpur.

Authorities in Chongqing said they welcome investors to the cluster on the banks of the Jialing River.

Some international enterprises, especially manufacturers, are facing problems such as rising wages and other constrains, so they have chosen to move their offices and headquarters to China's interior, said Wei Chuanzhong, deputy head of the Yuzhong district, where the cluster sits.

"Chongqing is a good choice, and the commercial cluster is a good choice," said Wei.

Along China's coast, other skyscrapers are rising. Shanghai Tower, a 632-meter building in Lujiazui, Shanghai's busiest financial services cluster, will be completed in 2014.

Ningbo, a port city in Zhejiang province, opened a 398-meter mixed-use building at the east end of the city.

Analysts said the pursuit of height actually reflects confidence in the potential of the property market in China and a response to policy changes.

Since the second quarter of 2010, controls on housing have pushed investors into commercial properties, according to Tsui Yik, director of valuation and investment services with E-commercial China, a provider of commercial real estate services

Last year witnessed 124 deals in block trading, reaching a total value of 123.2 billion yuan ($19.5 billion), said Tsui.

Commercial properties under construction in prestigious locations will be major draws for investors in 2012, according to a report released by E-commercial China on Wednesday.

Investment approaches for commercial properties are quite different from those for residential properties in terms of the cycle of investment returns, transaction taxes and the amount of capital required, said Xue Jianxiong, an analyst from China Real Estate Information Corp.

Zhang Yuntian, a Shanghai-based entrepreneur who specializes in industrial design, said he had mixed feelings about renting a unit in a skyscraper.

"Tall towers are usually landmarks of a city that help build up an enterprise's image, and a quality working environment is guaranteed.

"But on the other hand, for many small companies, it is not very cost-effective," said Zhang.

wuyiyao@chinadaily.com.cn