Knowledge Hub

The Rediscovering Kowloon West outlines upcoming development areas and infrastructure projects in the west of Hong Kong and identifies opportunities for occupiers and investors.

Two mega projects in Lantau Tomorrow Vision and Northern Metropolis are expected to pave the way for different office clusters around Kowloon Station, Cheung Sha Wan and the New Development Areas (NDAs) in the New Territories. As a result, 29% of Grade A office space in the next five-years will be in Kowloon West with total supply expected to increase from 6 million sq. ft. in March 2022 to 9 million sq. ft. 2026.

This report was originally published in https://www.colliers.com/en-hk/research/colliers-radar-rediscovering-kowloon-west

Tenant enquiries and site visits rebounded in May following the further relaxation of COVID-19 controls. Mainland China remained the lone exception.

Demand for traditional space is being negatively impacted by mainland China’s anti-pandemic measures and a rising number of downsizing enquiries. However, India and Australia saw robust new set up and expansion demand.

Pressure for higher incentives remained weak, particularly in Australia. Rents continued to recover, led by cities in India.

Sentiment in most markets improved as the bulk of markets in the region continued to shift away from being tenant-favoured. Mainland China was among the weakest performers.

This report was originally published in https://apacresearch.cbre.com/en/research-and-reports/Asia-Pacific-Market-Sentiment-Survey---June-2022

The Greater Bay Area (GBA) has undergone rapid development in recent years, particularly in infrastructure and transportation network enhancement. Outline Development Plan for GBA issued by the Central government shows the Chinese government’s commitment to improving capital flows throughout the region, which will benefit Hong Kong, specifically the office market.

According to Knight Frank's in-house data, interviews from landlords, as well as information from tenants and agency practitioners, Biomedical, Family office, TMT and Emerging and high-growth Chinese companies are the four new potential Chinese mainland businesses to come to the Hong Kong market.

In this report, Knight Frank has identified three emerging office hubs in Kowloon that have greater potential to reap the benefits brought by the development of the GBA.

• Kai Tak Development Node – it is well connected to cities in GBA via the Intercity Through Train;
• Cheung Sha Wan – Lai Chi Kok – the upcoming notable new office supply in Cheung Sha Wan and Lai Chi Kok area will transform it into one of the largest office hubs in western Kowloon;
• CBD1.5-XRL Station – given the large scale of development, prestigious location and unique positioning, the West Kowloon Cultural District together with the XRL topside project will become an important up and coming office hub in Hong Kong.

Looking ahead, GBA will continue to gather momentums to develop into a world-class city cluster, and Knight Frank expects leasing demand from Chinese Enterprises to rebound and keep rising upon the reopening of the border.

This report was originally published in https://www.knightfrank.com/research/report-library/greater-bay-area-development-report-june-2022-9110.aspx

Cushman & Wakefield’s 2021-2022 Asia REIT Market Insight report investigates the burgeoning Real Estate Investment Trust market in Asia, examining the primary drivers and state of play in key markets mainland China, Hong Kong SAR, India, Japan and Singapore.

The report reveals that, backed by robust capital structures, sufficient financial liquidity, and supportive regulatory policies, REITs continue to gain overall momentum as the pandemic subsides with logistics/industrial and data centre REITs outperforming more traditional asset classes.

Key highlights:

• Asia market REITs recovered strongly during 2021 after demonstrating notable resilience through the peak of the COVID-19 period, supported by new economy asset classes.
• Industrial and logistics REITs in the Asia market showed the greatest resilience, recording a total return of 24.7 percent, as all other asset classes achieved positive returns.
• Supply chain uncertainties are creating demand as operators accumulate reserves of warehouse space.
• Mature REIT markets can expect to see greater M&A activity through the remainder of 2022 while developing markets can expect to see growth of REITs accelerate.