Hong Kong Major Report - Kowloon East - Hong Kong's CBD 2.0
Technology is transforming the way people work and corporates operate. It is also making it more feasible for companies to operate offices outside of city cores. Decentralisation is a popular occupier strategy in Hong Kong given high rents and tight space availability in the CBD. Ageing building stock in many core office submarkets is also weighing on corporates’ leasing decisions.
New decentralised office submarkets in Hong Kong are set to provide occupiers with cost effective options outside of Central, Wan Chai /Causeway Bay and Tsim Sha Tsui. These submarkets offer rents only a quarter of those in the CBD and are just a few MTR stops away from Central. Travelling distance to these locations will shorten further as infrastructure continues to improve. Buildings in these areas are significantly younger than those in core submarkets and are built to the highest standard.
Of these decentralised office submarkets, Kowloon East is best-equipped. The area has developed over several years and is already a popular location for large offices. This report by CBRE Research profiles the Kowloon East CBD and explains the reasons why it is set to outperform other emerging office submarkets in the coming years and establish itself as a new CBD for Hong Kong.