A look into Hong Kong’s commercial real estate market within the next 15 years

The property market saw a three percent contraction in H1 2022 while housing rent fell two to three percent during the same period

Financial Secretary Paul Chan Mo-po noted that Hong Kong’s economy is steadily recovering despite the volatile global economy and the moderate full-year inflation rate, which is currently at 2.1 percent, reported the Asia News Network.

He stated in his government blog that the declining global economy, along with the high inflation rate in Europe and the US, is taking a toll on the various aspects of the Hong Kong market. Despite the circumstances, however, he added that the Hong Kong Special Administrative Region government is taking the necessary measures to stabilise the economy.

In light of this, the property market saw a three percent contraction in H1 2022 while housing rent fell two to three percent during the same period.

Meanwhile, the South China Morning Post mentioned that Hong Kong’s commercial real estate market will transform over the next 15 years in line with the emergence of tech and innovation businesses, as well as the continuous uprising of the traditional financial, trade, and service sectors.

More: Hong Kong’s emerging office demand to boost absorption in H2 2022

Two anchor cores — the Northern Metropolis and Harbour Metropolis — will contribute to Hong Kong becoming a North-South commercial corridor.

As a result of this transition, investors and occupiers alike will gain a competitive advantage and have new opportunities to expand their businesses. However, the precise timing and implications depend on complex economic and practical factors which will gradually take shape.

The area’s growing population will also require new buildings in addition to the existing development in order to meet their needs. 

To expedite infrastructure works within the Northern Metropolis, the government is investing HKD100 billion (USD12.7 billion). Private sector participation is crucial to its implementation. Moreover, traditional land sales for office, retail, and residential purposes will continue to be offered.

Hong Kong’s economy will continue to evolve, and those who get the timing right can generate significant real estate upside.

The Property Report editors wrote this article. For more information, email: [email protected].