Concrete Analysis | Hung Hom’s connectivity with emerging business hubs in Hong Kong is lifting the fortunes of the former industrial area
- Hung Hom is as a critical node on the Sha Tin to Central rail link
- District was a heavy industrial centre until the early 1970s
In military circles, they say that amateurs talk about tactics, but professionals study logistics. Looking at the way property markets have developed in recent years, I’ve come to the conclusion that something similar applies in real estate.
Don’t worry, I’m not suggesting war has broken out. At least not yet. What I mean is that the mantra “location, location, location” is no longer enough. These days, it is “connections, connections, connections” – the construction of transformative transport links – that are providing some of the biggest developmental springboards. And they are proving to be excellent indicators of future opportunities – both overseas and here in Hong Kong.
Take London’s defunct docklands. Redevelopment began in 1988 and the first buildings were completed in 1991 … just as the commercial property market was nearing collapse. Things turned around when work began on the much-delayed Jubilee Line Extension. Opening in stages from 1999, it provided critical connectivity to London’s core inner city office markets. Today Canary Wharf has established itself as the leading alternate London central business district.
Closer to home, Shanghai’s new Hongqiao business district, was never positioned, to rival Pudong Lujiazui. Rather, its attractiveness as an office location is related directly to its proximity to the Hongqiao transport hub. Probably China’s biggest single transport nexus, it ties together high speed rail, light rail, metro and air transport in a single, very convenient package.
There is no hard and fast rule about timing when making the most of opportunities. But, Hong Kong’s Urban Renewal Authority (URA) often launches project tenders up to 10 years ahead of a major, transformative infrastructure improvement.
That said, in the years running up to a major new, infrastructure project launch, it’s not uncommon to witness a flurry of government land sales, landlords launching the redevelopment of wholly-owned buildings in the area and developers accelerating the assembly of desirable sites via strata title buyouts under the Compulsory Sale for Redevelopment Ordinance.
