LREF 2017: Hong Kong’s approach to property can provide inspiration for the UK, according to industry experts discussing its current development and infrastructure projects.
Hong Kong Harbourfront Commission’s Nicholas Brooke, speaking on a panel at the London Real Estate Forum, said: “Hong Kong has a reputation for responding to challenges and turning them into opportunities.
“The ‘one country, two systems’ aspect is a major opportunity. The Sino-British Joint Declaration and being a special administrative region of China for 50 years both enable it to become a major financial centre.”
Nevertheless, he added, there were parallels to challenges faced in the UK, particularly in catering for an ageing population and delivering housing to keep up with demand.
“Half of Hong Kong’s population lives above the 16th floor. We have mastered vertical density but I believe Hong Kong has a premium price for commercial and residential real estate.”
Brooke also stressed the importance of the ambitious concept of creating a Guangdong-Hong Kong-Macao Bay area, which could become an international business district.
Connectivity was also highlighted as a key driver for Hong Kong’s success.
A new high-speed rail link connecting major cities and stretching into China is expected to catalyse business opportunities in the region – something which could be replicated in the UK with the delivery of HS2 and Crossrail 2.
Michèle Dix, managing director, at Crossrail 2, said: “Crossrail 2 seems little in comparison but lots of the challenges are similar in terms of needing to grow, providing more space for people to live and connecting them to their jobs. The difference though between us and Hong Kong – and something I wish we had – is we don’t own the land along the route.”
Fergus Keane, senior director of capital markets at Cushman & Wakefield, echoed the importance of infrastructure in the UK in order to become a gateway for international investment.
“We need HS2, Crossrail 2 and a third runway. I would argue that we would need another runway in London, too.
“We need a government that is not distracted by the various things it finds itself distracted by at the moment – that is number one – a government that can make decisions unfettered and a government that needs to do this effectively.
“Every day we delay on the runway decision is costing the country money.”
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