Is the business environement being eroded beyond the point of return?
The air polution is increasing with no long term strategy in place to improve the living environment. Buildings are getting higher and the street grip remain the same. The congestion in traffic increases with ‘stuck in traffic’ being a normal everyday excuse for being late for anything! Does remind one in a way of Bangkok in the early nineties when traffic congestion was unpredictable and creating chaos – Bangkok has stepped out of this with long term planning. Is Hong Kong going down this road…..
How can we wish ever to improve the carbon or environmental footprint of Hong Kong with the extremely ‘HOT’ and developing property market? Minor increase in nterest rates will not curb this problem. It will further erode the business environment, stifle entrepreneurial spirit (who can afford these rentals at start-up?), and keep the property tycoons right up there where they have been a long long time.
See Cushman and Wakefield report today: http://www.cushwakeasia.com/emkt/2011/Global/BusinessBrieifingHongKong/BBHongkong.html
The Hong Kong CBD was ranked as the world’s most expensive office market in 2010, as strong leasing combined with limited new supply fueled rising occupancies and skyrocketing rents. This paper will examine the Hong Kong CBD relative to adjacent non-CBD markets as well as competing financial centers in the Asia Pacific region, and the cost implications to occupiers. Based on strengthening economic and property fundamentals, this analysis demonstrates the scale of cost increases that occupiers will face over the next two years which may make competing office properties outside the CBD and other financial centers in the region worth a closer look. However, other competing locations are also less likely to yield significant cost saving opportunities to occupiers.