Satisfying demand: What will it take for Hong Kong’s office market to regain balance by 2020?
Despite office rents having dropped more than 20 percent from their peak in 2008 to the end of 2012, Hong Kong’s CBD is still one of the most expensive places in the world to do business. This is partly due to the limited amount of grade A office stock, and the Hong Kong government has unveiled plans to build another CBD and relocate existing government offices in an effort to increase long-term supply. However, whether these plans can meet future demand and when these blueprints can be delivered are still unclear.
In a bid to mitigate the office shortage, the government has launched ambitious plans that could provide some 4.7 million square metres of new office space. These include the CBD2 plan in Kowloon East, one of the major centrepieces in Hong Kong’s future development strategy. The development of new Central Harbourfront, the Guangzhou-Shenzhen-Hong Kong Express Rail Link terminus and West Kowloon Cultural District also will add a fair amount of office