{"id":11075,"date":"2021-02-22T09:59:20","date_gmt":"2021-02-22T02:59:20","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=11075"},"modified":"2021-06-04T16:01:04","modified_gmt":"2021-06-04T09:01:04","slug":"chinese-tech-firms-scurry-for-tsim-sha-tsui-offices","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/chinese-tech-firms-scurry-for-tsim-sha-tsui-offices\/","title":{"rendered":"Chinese tech firms scurry for Tsim Sha Tsui offices"},"content":{"rendered":"

Analysts believe the district has the potential to be Hong Kong\u2019s tech hub<\/span>\u00a0<\/span><\/p>\n

\"\"
Prime office space in Central district had a 7.3 percent vacancy rate in December, a 16-year record high. cozyta\/Shutterstock<\/figcaption><\/figure>\n

Chinese tech companies seeking to go public through Hong Kong\u2019s stock exchange rush into Tsim Sha Tsui offices<\/span>, considering cheaper rents and accessibility to the high-speed rail link between mainland China and Hong Kong, reported South China Morning Post<\/a>.\u00a0<\/span><\/p>\n

Such foresee follows Tencent\u2019s footprint expansion in Hong Kong via a 10,000 square-foot<\/span>\u00a0office space leasing in The Gateway, a building owned by Wharf (<\/span>Holdings<\/span>) in the region. The company occupies other offices at Three Pacific Place in Wan Chai<\/span>,<\/span>\u00a0and the World\u00a0<\/span>Finale<\/span>\u00a0Centre<\/span>\u00a0also located in Tsim Sha Tsui.\u00a0<\/span>\u00a0<\/span><\/p>\n

According to agents, Tencent\u2019s rent would cost HKD6 million (USD770,000) per year for The Gateway space, which is approximately a fifth lower than the price it would\u2019ve paid for the same space two years ago.<\/span>\u00a0<\/span><\/p>\n

The city is likely to see more Chinese companies lease office space, as renowned Chinese\u00a0short video app\u00a0<\/span>Kuaishou<\/span>\u00a0Technology had recently listed its shares in Hong Kong<\/span>, including\u00a0<\/span>Kuaishou\u2019s<\/span>\u00a0competitors<\/span>\u00a0such as\u00a0<\/span>Duoyin<\/span>,\u00a0<\/span>Bilibili<\/span>, and\u00a0<\/span>iQiyi<\/span>\u00a0reportedly contemplating flotations.\u00a0<\/span>\u00a0<\/span><\/p>\n

Such situation would help relieve the city\u2019s landlords struggling with the high vacancy rates as the economy recovers from the pandemic. <\/span>\u00a0<\/span><\/p>\n

Daniel Wong, CEO of Midland IC&I, said, \u201cin China, Shenzhen has been a tech hub instead of\u00a0<\/span>Hong<\/span>\u00a0Kong, but [because of Chinese stock listings], it is believed that more tech firms will set up offices in Hong Kong.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThey will locate their offices in different locations, but probably not Central because of the high rent,\u201d he added.\u00a0<\/span>\u00a0<\/span><\/p>\n

Fiona Ngan, head of office services in Hong Kong at Colliers International, mentioned, \u201cTsim Sha Tsui offers cheaper rental, it has better building quality compared with Hong Kong Island, and is close to the West <\/span>Kowloon<\/span>\u00a0station.\u201d<\/span>\u00a0<\/span><\/p>\n

The high-speed railway from West Kowloon station, a seven-minute drive from Tsim Sha Tsui station, takes around 15 minutes to arrive at Shenzhen.\u00a0<\/span>This makes it incredibly convenient for Chinese tech executives, as West Kowloon station is the only station in the city for the Guangzhou-Shenzhen-Hong Kong Express Rail Link.\u00a0<\/span>\u00a0<\/span><\/p>\n

Lower rents in Tsim Sha Tsui seem to be an even bigger lure. <\/span>As stated by Colliers, t<\/span>he district experienced the biggest decline in office rents in 2020, a 21.7 percent fall, which is worse than Central\u00a0<\/span>and Admiralty districts (17.9 percent), and the overall fa<\/span>ll throughout Hong Kong (15.9 percent).<\/span><\/p>\n

According to property consultancy JLL, prime office space in Central<\/span> had a 7.3 percent vacancy rate in December, a 16-year record high, surpassing <\/span>7 percent for the first time<\/span>\u00a0since 2004<\/span>. In January, the city\u2019s overall vacancy rate slightly increased from 8.8 to 8.9 percent, and it is expected to\u00a0<\/span>grow further as companies reduce or surrender their space.\u00a0<\/span>\u00a0<\/span><\/p>\n

More: Hi-tech firms surge home prices in Dongguan<\/strong><\/a><\/p>\n

Analysts believe that if landlords take the initiative, Tsim Sha Tsui could potentially become a technology hub<\/span>. In December, Savills re<\/span>lease<\/span>d<\/span>\u00a0a report indicating\u00a0<\/span>Hong Kon<\/span>g\u2019s appraisal as\u00a0<\/span>a \u201ctech megacity\u201d, known for complementary industries, global connectivity, and a deep talent pool<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Ngan of Colliers said that for Tsim Sha Tsui to transform from a shopping district to Hong Kong\u2019s tech hub, it would need to further improve its transport networks.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cTST can further improve its attractiveness by improving proximity to the transportation network to the mainland,\u201d she added.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts believe the district has the potential to be Hong Kong\u2019s tech hub\u00a0<\/p>\n","protected":false},"author":12,"featured_media":21016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[137,171,1110,660],"class_list":["post-11075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-china","tag-hong-kong","tag-office-sector","tag-tech-hub","news_country-china","news_country-hongkong","news_author-property-report"],"acf":[],"yoast_head":"\nChinese tech firms scurry for Tsim Sha Tsui offices | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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