According to JLL, Hong Kong is still the only Chinese city that is globally oriented. The Special Autonomous Region (SAR) remains a vital link between mainland China and the rest of the globe. Hong Kong has been able to operate as a transparent and business-friendly gateway not only for China, but also for the rest of Asia Pacific and the world, thanks to the 'One Country, Two Systems' framework. Hong Kong, along with London, New York, Paris, Tokyo, Singapore, and Seoul, is firmly positioned among the 'Big Seven' most globalized cities as a result of these strengths. qatar properties
Hong Kong, being one of the world's "Big Seven" cities, serves as a vital link between mainland China and the rest of the globe. According to the research, mainland companies have been a driving force in increasing occupational demand, with a strong demand for real estate in the city in recent years. In terms of total leasing volumes in the Central area, market records show that mainland Chinese companies leased offices at a rate of 48 percent in 2017 compared to 18 percent in 2011.
Furthermore, Hong Kong is a popular destination for companies seeking to obtain financing from abroad. This has helped Hong Kong maintain its position as a key global financial center, and it now ranks among the "Big Seven" cities with the highest concentrations of foreign capital, business, and people.
Meanwhile, by using Hong Kong's financial services strengths in terms of financing, RMB internationalization, and risk management, the Belt and Road Initiative provides another chance for Hong Kong to expand on its gateway role.
"As one of the 'Big Seven' cities in the world, Hong Kong's strengths as a super-connector, its critical mass of business functions, and its attractive business operating environment will continue to secure the city's position among the top city networks in China and in this 'new era' of change," says Joseph Tsang, Managing Director at JLL in Hong Kong.
"With the Belt and Road Initiative becoming a key tenet of China's future development, Hong Kong, as a leading global financial center, is expected to benefit from the growing demand for its broad-ranging expertise in financial and professional services to support the Initiative's roll-out, acting as connection points and facilitators between China, western firms, and 'Belt and Road' initiatives."
Having said that, there are still elements that could affect Hong Kong's standing in the global city hierarchy. High expenses for both residential and business space are a major source of worry. According to JLL's Premium Office Rent Tracker, the Central District's premium space occupancy costs are two-thirds more than its closest competitors, New York and London. Geographical limits are a longer-term issue that is difficult to resolve.
Despite the fact that more integration and connection within the Greater Bay Area may alleviate supply pressures, due to Hong Kong's unique status, frictions in terms of people and financial flows will persist. As a result, Hong Kong is unable to fully exploit its position as the natural core for a megaregion with a $1.6 trillion economy and a population of over 70 million people.
Furthermore, while Hong Kong's business operating conditions, market openness, environmental quality, and cultural offer distinguish it as China's most appealing metropolis, the city is at risk of slipping behind in terms of innovation. Even the most conventional sectors, where Hong Kong's core strengths reside, will be under pressure to innovate and digitize as the global economy advances.