Hong Kong Market Direction 2022: What You Need to Know in the Year of the Tiger
The emergence of a fifth wave of COVID-19 in Hong Kong, 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 our Hong Kong Market Direction 2022 report, we highlight six factors we see impacting the future direction of the commercial real estate market in the Year of The Tiger:
ESG Is Too Important to Be Ignored
Bargain Hunting for Premium Office Properties
Developers to Enrich Landbanks in the Northern Metropolis
Automation and Warehouses are Connecting
Healthy Lifestyles to Forge New Demand for Fitness Centers
Growing Needs for Quality Virtual Conferencing and Collaborative Workspaces
シティ・デベロップメンツ・リミテッド(CDL)のESG戦略は、1995年に確立された企業理念「建設と環境保護」に根ざしています。CDLの価値創造ビジネスモデルは、統合、イノベーション、投資、そしてインパクトという4つの主要な柱を基盤としており、CDLは「脱炭素化」、「デジタル化とイノベーション」、「情報開示とコミュニケーション」という3つの主要な成果目標の達成を目指しています。2017年に策定されたサステナビリティ・ブループリント「CDL Future Value 2030」は、CDLの事業戦略と事業運営全体にわたる明確な戦略目標とESG目標を定めています。.
Asia-Pacific prime office rents rise for first time since pandemic
Knight Frank’s Asia-Pacific Prime Office Rental Index saw a 0.3% quarter-on-quarter increase, the first uptick since Q3 2019, before the start of the pandemic. Overall vacancy remains elevated at 12.8%, but office rents are likely to have bottomed out, thanks to improving business sentiments and a gradual and more sustainable return to workplaces, especially among big tech occupiers taking advantage of lower rents to move into high-quality CBD office spaces.
While conditions remain tentative due to the Omicron variant, we expect rents to continue stabilising into 2022 with more markets in the region reaching an inflexion point in the rental downcycle. As occupiers continually evolve their space strategies on the adoption of hybrid working styles, 2022 will be a year of reset and experimentation. However, this does not mean less demand for office spaces. We expect leasing activity to strengthen into 2022, with demand underpinned by the integration of flexible space solutions and a pivot to quality spaces that emphasises wellness and employee experience.
Overall office gross absorption across the top six cities was at about 33 million sq feet, 10% higher compared to 2020. Pan-India absorption during the year surpassed the annual gross absorption during 2016-2018 by 7%, signalling a strong revival in occupier confidence.