Six big trends that could shake up Hong Kong's office market by 2020

Real estate marke set to change dramatically.

In 2020, Hong Kong’s office market will have considerably diversified, providing more opportunities for landlords and occupiers than exist in the current market.

This trend was anticipated in the ‘Hong Kong Office 2020’ report that was recently released by Jones Lang LaSalle, the professional services firm which specialises in real estate.

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The report anticipates how the market will be shaped over the next six years, identifying the major trends that will impact upon landlords and occupiers leading up to 2020.

These trends include 1) Rising demand for office space from Chinese corporates; 2) Evolution of new office hotspots, including Hong Kong East, Kowloon East, Wanchai/Causeway Bay and West Kowloon;

3) Completion of new public transport infrastructure, making relocation outside Central more attractive to tenants; 4) New technology and management theories that will influence office architecture and space; 5) Shifting attitudes in tenure, with owner-occupancy increasingly favoured; and 6) Growing demand for sustainable buildings, and a shift towards landlords passing savings onto occupiers.

Hong Kong will gradually become a multi-nodal office market as a result of government policies promoting land supply and the emergence of new transport infrastructure. The shift will be further encouraged by a surge in tenant demand, largely resulting from the growing presence of Chinese corporates.

Gavin Morgan, Chief Operating Officer and Head of Leasing at Jones Lang LaSalle, said: “The real estate market in Hong Kong is set to change dramatically as we approach 2020. It is important for landlords and occupiers to adjust their strategies in order to stay competitive and maximise their returns.”