Stronger Demand for Green and Premium Space
- Focus on ESG-related compliance expected to lead Hong Kong market trends for 2022
- Tenants to favor premium and green office space luxury sector
- Growing demand for automated warehouses, health centers, collaborative workspaces with enhanced virtual interactive tools
Global real estate services firm Cushman & Wakefield announced its Hong Kong Market Direction 2022 report today. Responding to real estate industry stakeholders' rethinking of strategies for 2022, the new report highlights six emerging factors expected to be key to the future direction of the commercial real estate market in Hong Kong in the Year of The Tiger. A renewed focus on ESG-related compliance is identified as the leading trend for the year, with elevated climate-related risk requirements for fund managers now in play. Additional trends determined for the year center on an anticipated revival for premium office properties, developer land acquisitions around the Northern Metropolis initiative, greater automation in the logistics industry, new expansion in the health and wellness sector, and growing demand for enhanced virtual communications and collaborative workspaces.
“The Year of the Tiger is set to bring about a significant transformation in Hong Kong’s commercial real estate market. The emergence of a fifth wave of COVID-19, together with continued strict border controls, has seen investors and corporations looking to adopt new strategies to manage the new normal in commercial real estate business operations. In response, Cushman & Wakefield has worked to identify the key trends we see emerging in the Hong Kong market in 2022. Firstly, we forecast that ESG objectives and greener real estate practices will be more influential than ever, especially as we have already witnessed government-backed SFC regulations to actively engage fund managers to implement climate risks. And, linked to the focus on ESG, multinational firms will be further incentivized to seek green and wellness-certified office buildings, with premium properties then likely to spearhead the gradual office sector recovery,” commented John Siu, Managing Director, Hong Kong, Cushman and Wakefield.
“We also expect developers and investors to actively look for land development opportunities, particularly under the auspices of the Northern Metropolis initiative. In the industrial sector, we see accelerated automation, with greater numbers of logistics companies progressively utilizing robotics and automation in their day-to-day operations. In retail, rising awareness in Hong Kong of health and wellness factors, and greater interest in healthier lifestyles, will spur expansion in gyms, fitness centers and related businesses, sometimes operating with 24/7 service models. Finally, in the light of continued social distancing and workforce preferences, we expect occupiers to upgrade virtual interaction tools, feeding demand for enhanced virtual communications and collaborative workspaces,” added Keith Chan, Head of Research, Hong Kong, Cushman and Wakefield.
Click here to download the Hong Kong Market Direction 2022 report.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms in the world, with approximately 50,000 employees in over 400 offices and 60 countries. In Greater China, a network of 22 offices serves local markets across the region, earning recognition and winning multiple awards for industry-leading performance. In 2021, the firm had revenue of $9.4 billion across core services including valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.