China’s Belt and Road Initiative puts pressing need for Hong Kong to increase office supply
Conversions of the Central Harbourfront site, Rumsey Street Car Park, Queensway Plaza, and Sheung Wan Bus Terminus could add another 1.3 million sq ft of office space into the market
In the past few months, I have participated in some activities relating to the Belt and Road Initiative, including a high-level seminar in Beijing where senior officials and business leaders from the mainland and Hong Kong discussed how to leverage Hong Kong’s unique advantages to support the initiative and take it forward. It became apparent that the city’s super-connector role could have far-reaching impact on the demand for office space.
Hong Kong’s capital markets and professional services would be very useful for state-owned enterprises (SOEs) seeking opportunities under the initiative. Considering the scope, magnitude and complexity of many of the potential projects, the SOEs and mainland enterprises would stand to benefit by setting up an office in Hong Kong.
The city is home to 154 licensed banks, where 132 of them are incorporated outside Hong Kong. It is known for its expertise in providing legal, accounting and project development consultancy, as well as insurance, risk management and dispute resolution services that are on par with international standards.
Yet, Hong Kong needs to create more grade A office space to attract and accommodate these top-end enterprise occupiers, or would risk losing them to competitors such as Singapore, Beijing, Shanghai or even Shenzhen.