The rent of the commercial building has broken the roof.
The rent of the Grade A commercial building in Central, which is the most expensive in the world, has once again broken. The latest rent is 225 yuan. The surge in rents at Grade A commercial buildings reflects the fact that Hong Kong is not just a residential area, so the expansion is both urgent and comprehensive.
There is a shortage of Jiasha in Central.
The price and rent of Class A commercial buildings in Hong Kong has already surpassed that of New York City in the world. For example, this year’s annual global office rental cost report pointed out that Central is holding $309 per square foot per year. The rents in Hong Kong’s commercial buildings are just like residential rents. The heights are not high. The latest rents in the Grade A commercial buildings in Central have set a new record of $225.
The rent of Jiaxia in Central is rising. On the one hand, there is absolutely no new supply. On the other hand, demand is rising. In particular, in recent years, mainland enterprises have come to Hong Kong in a big way, and large enterprises have shown their status. They are not willing to pay for rent in Central or even buy Class A. Commercial buildings, the number of porridge is less than natural, so that the price of commercial buildings and rents rise.
Many enterprises, including multinational corporations, have been squeezed out of Central and even Wanchai by some high rents, some moved to Quarry Bay, some moved to East Kowloon through the sea, and some new trends have recently moved to Wong Chuk Hang, commercial buildings in these areas. The supply cannot catch up with demand, and the rents of non-first-line commercial buildings have also risen. In short, rents in commercial buildings across Hong Kong are on the rise.
This is only the current situation. According to the Hong Kong Government’s “Hong Kong 2030+”, the overall economic land demand for Grade A office, commercial and industrial land is 457 hectares, and the estimated supply is only 200 hectares. This 457-hectare estimate does not take into account the additional requirements that national policies such as the implementation of the Greater Bay Area and the Belt and Road Initiative will drive.
If the supply of economic land such as commercial buildings continues to lag, the relevant rents will only continue to rise, which will make Hong Kong’s business costs more and more high. In recent years, some multinational enterprises have moved some departments out of Hong Kong to neighboring areas such as Singapore. The situation is getting worse and worse. There are high-paying jobs that cause losses to the economy of Hong Kong and the people’s livelihood.
The public’s concern about the shortage of land is concentrated on residential land. It is understandable that after all, what the people feel most is the more expensive they live, the more they live, the harder they live, and the lower the quality of life. However, in the discussion of the land, economic land and infrastructure and facilities should not be ignored.
Preparing for the next generation
At present, there is a saying that only 230 hectares of residential land is missing, not 1,200 hectares, so there is no need to reclamation, but this obviously ignores the serious shortage of non-residential land, including commercial buildings. In fact, if the per capita living area is not so fine, then the third world, business costs are not so high, the world, 1,200 hectares is not enough. The extension is to prepare for the next generation of living and economic needs. All walks of life should consider rationally and comprehensively, and draw conclusions as soon as possible.