CUBIC CoverDec08.indd - Colliers

STONECUTTERS BRIDGE
Also known as Angchuanzhou Bridge, Stonecutters
Bridge is a cable-stayed highway bridge and, when
completed, will be one of the longest bridges of its
kind. Due to be completed in 2009, the bridge will span
almost 1.6km and will link Tsing Yi Island and
Cheung Sha Wan as part of the newly constructed Route
8, which will link Lantau Island, Tsing Yi Island, Cheung
Sha Wan in West Kowloon and Sha Tin
in the New Territories.
THE BATTLE FOR SPACE
The office crunch has long been a matter of course in downtown Hong
Kong, which has the reputation of having one of the world’s costliest rentals
– especially for prime space. In 2008, the rentals in Central District hit an
average of HK$100 per square foot per month. In some prime parts of
Central, rentals were more than HK$200 per square foot per month. Driven
by the demand for office and residential space, companies have shifted
some of their office operations out of Central and other pricier districts,
choosing more innovative sites to house operations.
Since industrial property rents historically lagged behind their office and
commercial counterparts in terms of growth, local developers seized on the
cheaper prices, buying existing industrial properties and converting them
into office or commercial buildings to take advantage of high office and
commercial rents.
The Hong Kong government has led the way, relocating some of its
offices from Wanchai to Kowloon East. Old industrial estates in areas such
as Kowloon East and Kwai Chung have become hubs for businesses and
residents alike as part of the local government’s urban-renewal plans. Some
companies, such as Emperor Group and Far East Organisation, have also
bought old industrial buildings, with plans to convert the sites into hotels.
This movement has lead to a shortfall in available industrial space, and
vacancies in the sector have reached a low of 1.3 percent. There is also a
small supply coming on stream in the next few years.
Even amid stiff competition and rising costs, Hong Kong has retained
a strong grip on the business of import-export. According to government
statistics, the volume of re-exported goods increased by 8.3 percent year
on year in July 2008, with exports growing by 7.3 percent. An April 2008
report by Colliers International also noted that some Chinese manufacturers
were looking at shifting part of their operations to Hong Kong because of
the rising Chinese labour costs.
ARTIST’S IMPRESSION OF INTERLINK: The new port,
bridge and warehousing will help bring a new level
of interconnectivity