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The following preliminary constituent changes to the GPR 250 Index and GPR 250 REIT Index (indicated with an asterisk) will become effective as per 21 September 2020 (start of trading).

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Data Centers are instrumental to the successful development of our pillar industries, being integral to the efficient operation of financial, trading and logistics services in Hong Kong. With rapid development of global telecommunications and the growing emphasis on technological advancement for daily convenience, the demand for high-tier data center services from users like of “cloud computing”, “E-commerce” and “high-frequency trading” has never been greater in Hong Kong. According to the LegCo paper in December 2013, the government had originally reserved three sites in Tseung Kwan O for building Data Centers. After the first site was sold, the remaining two adjoining sites were consolidated into one. All the three sites designated for data center uses are eventually acquired by the same data center operator. The market interest on industrial land remains very keen; as witnessed by the record transaction price in the recent sale by the government of an industrial land in Shatin, which was purchased through public tender by the world’s largest wireless network operator, China Mobile. The fierce competition among developers and other tenderers for this lot has justified government alarm over the shortage of Data Centers and the urgency to raise the supply of land for them.

Amid the ongoing expansion of Data Center services in Hong Kong, it is clear that the government is unable to meet the ever-rising demand in provision of land. While many operators might not need an entire Data Center block, there exists substantial demand for small-scale cloud-calculation Data Centers. In 2012, the government introduced a policy to promote the conversion of industrial buildings to Data Center use. The waiver fee for changing parts of industrial building aged 15 years or above into Data Centre use first is exempted. The exemption is applicable to Data Centre of all tiers. Since the conversion of industrial buildings into Data Centers drastically reduces development costs, landlords of old industrial assets would have more incentive to revitalize and covert their buildings into higher value-added Data Centers. It is therefore reasonable to infer that this new government policy will greatly stimulate the supply of small-scale Data Centers, helping to meet the demand of multiple businesses.

Indisputably, if Hong Kong aims to become an international Data Center hub in APAC, the provisions of suitable land plots supported by well-developed infrastructure and facilities are of utmost importance. World tech behemoths Google and Facebook had considered setting up data centers in Hong Kong but eventually abandoned their plans in 2013 and 2018 respectively. Google's official explanation at that time was the paucity of land for future expansion. Eventually, Google picked a site in Taiwan's Changhua County as the new location of its Data Center - five times larger than the original one in Tseung Kwan O, Hong Kong. Currently, Google is running two Data Centers in Asia, one in Taiwan and the other in Singapore. These sites are chosen because of multifaceted factors like attractive land prices, comparatively low energy costs and the geographical proximity to its Asia-Pacific Headquarters. In addition, the utilization of renewable energy is one of the Google’s top priorities. In 2012, Google announced its renewable energy use target to be 100%, maximizing the use of clean energy sources for generating electricity. In stark contrast, Hong Kong produces just 3 % of total electricity demand from renewable energy sources which, as identified by the Hong Kong Electrical and Mechanical Services Department, would go against the “green philosophy” valued by Google. Limited space for further expansion, less-developed renewable energy supplies and a tepid response from the local government have seemingly restrained Hong Kong’s Data Center and high-tech industry development.

Apart from land resources, other ancillary facilities and human resources are also fundamental for Hong Kong to tackle in striving to be an Asia-Pacific Data Center hub. There are some prerequisites for a premise to be suitable for use as a Data Center, such as high ceiling height, flexible floor layout, a standardized fire system and sufficient spaces for the installation of supporting equipment (transformer rooms, backup generators, etc.). It is highly suggested that different government departments, inter alia the Lands Department and the Buildings Department, should provide and update proper guidelines in a timely manner to expedite the application procedures by the owners or their APs. The goal of becoming a successful Data Center hub in the Asia-Pacific region, cannot be achieved without the government’s support and favorable policy to ensure our competitiveness against other cities in the region.

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Data Centers are instrumental to the successful development of our pillar industries, being integral to the efficient operation of financial, trading and logistics services in Hong Kong. With rapid development of global telecommunications and the growing emphasis on technological advancement for daily convenience, the demand for high-tier data center services from users like of “cloud computing”, “E-commerce” and “high-frequency trading” has never been greater in Hong Kong. According to the LegCo paper in December 2013, the government had originally reserved three sites in Tseung Kwan O for building Data Centers. After the first site was sold, the remaining two adjoining sites were consolidated into one. All the three sites designated for data center uses are eventually acquired by the same data center operator. The market interest on industrial land remains very keen; as witnessed by the record transaction price in the recent sale by the government of an industrial land in Shatin, which was purchased through public tender by the world’s largest wireless network operator, China Mobile. The fierce competition among developers and other tenderers for this lot has justified government alarm over the shortage of Data Centers and the urgency to raise the supply of land for them.

Amid the ongoing expansion of Data Center services in Hong Kong, it is clear that the government is unable to meet the ever-rising demand in provision of land. While many operators might not need an entire Data Center block, there exists substantial demand for small-scale cloud-calculation Data Centers. In 2012, the government introduced a policy to promote the conversion of industrial buildings to Data Center use. The waiver fee for changing parts of industrial building aged 15 years or above into Data Centre use first is exempted. The exemption is applicable to Data Centre of all tiers. Since the conversion of industrial buildings into Data Centers drastically reduces development costs, landlords of old industrial assets would have more incentive to revitalize and covert their buildings into higher value-added Data Centers. It is therefore reasonable to infer that this new government policy will greatly stimulate the supply of small-scale Data Centers, helping to meet the demand of multiple businesses.

Indisputably, if Hong Kong aims to become an international Data Center hub in APAC, the provisions of suitable land plots supported by well-developed infrastructure and facilities are of utmost importance. World tech behemoths Google and Facebook had considered setting up data centers in Hong Kong but eventually abandoned their plans in 2013 and 2018 respectively. Google's official explanation at that time was the paucity of land for future expansion. Eventually, Google picked a site in Taiwan's Changhua County as the new location of its Data Center - five times larger than the original one in Tseung Kwan O, Hong Kong. Currently, Google is running two Data Centers in Asia, one in Taiwan and the other in Singapore. These sites are chosen because of multifaceted factors like attractive land prices, comparatively low energy costs and the geographical proximity to its Asia-Pacific Headquarters. In addition, the utilization of renewable energy is one of the Google’s top priorities. In 2012, Google announced its renewable energy use target to be 100%, maximizing the use of clean energy sources for generating electricity. In stark contrast, Hong Kong produces just 3 % of total electricity demand from renewable energy sources which, as identified by the Hong Kong Electrical and Mechanical Services Department, would go against the “green philosophy” valued by Google. Limited space for further expansion, less-developed renewable energy supplies and a tepid response from the local government have seemingly restrained Hong Kong’s Data Center and high-tech industry development.

Apart from land resources, other ancillary facilities and human resources are also fundamental for Hong Kong to tackle in striving to be an Asia-Pacific Data Center hub. There are some prerequisites for a premise to be suitable for use as a Data Center, such as high ceiling height, flexible floor layout, a standardized fire system and sufficient spaces for the installation of supporting equipment (transformer rooms, backup generators, etc.). It is highly suggested that different government departments, inter alia the Lands Department and the Buildings Department, should provide and update proper guidelines in a timely manner to expedite the application procedures by the owners or their APs. The goal of becoming a successful Data Center hub in the Asia-Pacific region, cannot be achieved without the government’s support and favorable policy to ensure our competitiveness against other cities in the region.

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本月的报告将探讨亚太各地区上市房地产股票及房地产信托如何受疫情所影响以及对其未来的展望。

工业类房产信托是今年的一匹黑马，然而，它在8月份出现了轻微下滑。拥有工业资产的房产信托在后疫情时代保持了很好的弹性，而零售与酒店业的房产信托则因为疫情受到很大冲击。在实施社交隔离期间投资于酒店、零售和办公场所的房产信托受影响最大，但在8月，它们成了表现最好的版块。

8月份，亚太区上市房地产股票表现突出，优于其他资产类别的市场表现。地产市场的强势复苏也引起了中国当局的注意，为了进一步控制债务增长，相关部门发布了有关债券发行的新指南。6月份房价增长速度达到了过去十个月以来的最高点，这也暗示了即将采取全新的房价控制措施。

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