Concrete Analysis | Hong Kong’s evolving economy can help owners and occupiers maximise real estate value, but timing is key
- Hong Kong is likely to evolve into a North-South commercial corridor with two anchor cores – the Northern Metropolis and Harbour Metropolis
- The tech sector will relocate to the proposed Northern Metropolis while financial firms will stay in Harbour Metropolis, comprising multiple business districts on Hong Kong Island and Kowloon
Powerful forces are at work that will reshape Hong Kong’s commercial real estate landscape over the next 15 years.
The emergence of technology and innovation businesses are key pillars of the city’s economy alongside the traditional financial, trade and services sectors. As the economy evolves to accommodate these additional enterprises, current commercial districts will be expanded, realigned and combined, and new clusters created. Significant R&D, office and transport infrastructure will also be required.
With this transition there will be fresh opportunities for investors and occupiers to develop their businesses and gain competitive advantage. But the precise timing and implications are subject to complex economic and practical considerations that will progressively come into play. Now is the time for business leaders to activate their real estate strategies to influence the changes for success.
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Hong Kong finance chief says Hongkongers can take part in financing of Northern Metropolis
