Below are responses to the Policy Address 2020 from Colliers International:
Invigorating Island South:
“After the South Island Line opened, the Wong Chuk Hang area has been transformed into a small scale business district. Despite The Policy Address discussing the opportunity to invigorate the area, most of the sites have already been redeveloped or revitalised. The old industrial buildings left in this area are strata title owned buildings comprising over few hundred ownerships. Under this ownership structure, these buildings are difficult to apply for and to execute redevelopment under the Revitalisation Scheme 2.0 as consolidating multiple owners’ opinions is a very time-consuming process.
“In addition to the pilot scheme to charge a land premium at “standard rates”, the Government needs to provide a more feasible platform. Once the Wong Chuk Hang MTR station developments are complete and provide sufficient retail amenities in 2025, we expect that the office rental in this area will see an improvement of a further 15% over the next 5 years.”
From Hannah Jeong, Head of Valuation and Advisory Services
Implications on the office market:
“In the latest policy address, the government highlighted to further deepen the mutual access between the Mainland and Hong Kong financial markets, by accelerating the implementation of the cross-boundary wealth management connect scheme, while expanding of the scope of eligible securities under the mutual market access programme. Besides, the government also plans to promote the Hong Kong REITs market, and to further develop the private equity funds and family office business in Hong Kong. All these initiatives should help to bring in new impetus to the economy by expanding different streams of financial businesses, reinforcing the city’s status as an international and regional financial centre. We believe all these should help to support and stimulate new office demand, especially from the mainland businesses, looking for opportunities and set up their footprint in Hong Kong.”
Rosanna Tang, Head of Research, Hong Kong and Southern China
Land supply:
“As mentioned in the Policy Address, the Development Bureau will introduce a pilot scheme for charging land premium at “standard rates” to expedite the revitalisation of the old industrial districts, making a very positive impact on the redevelopment of industrial buildings. Newly built commercial buildings will enable better use of roads in old industrial districts with fewer loading and unloading activities and less illegal parking, easing traffic congestion and thus creating the conditions for a more favourable business environment.
“The Chief Executive mentioned in the Policy Address that she has authorised the Secretary for Development to expand the composition and remit of the Steering Group to include vetting departments other than those under the DEVB, with a view to reviewing more comprehensively the development approval processes for both Government and private projects, and rationalising the development-related requirements imposed by different bureaux. Due to limited supply of private residential units and inadequate land supply from the Government for development, developers have to be granted the development rights for private residential projects through land exchanges and lease modifications. This initiative will help speed up the approval process for land exchanges and lease modifications and alleviate the private housing shortage.”
“Furthermore, regarding the development of Tuen Mun West and the planning of Tuen Mun South Extension, these policy initiatives could help facilitate the growth of business activities in the district. This will therefore create more employment opportunities for the residents there.”From CK Lau, Managing Director, Valuation and Advisory Services, Asia