Hong Kong industrial plot for sale as manufacturers show interest to move back
Government offers plot for sale after manufacturers express interest in moving back to the city
The government has released the first industrial site for sale in 14 years as manufacturers have shown interest in moving back to the city to beat rising costs on the mainland.
The 13,616 sqft industrial site in Kwai Chung is one of nine marked for sale until December. The others are six residential and two commercial sites.
"It's good for manufacturers wanting to relocate part of their operations back to Hong Kong," said Danny Lau Tat-pong, the owner of industrial and architectural coating company Kam Pin Industrial.
Lau has a 40,000 sqmetre manufacturing plant in Dongguan, Guangdong province. He bought the factory site 20 years ago for about 8,000 yuan per square metre.
"The business environment on the mainland is deteriorating," he said. "Not only are labour costs rising, it is also getting increasingly difficult to find the right people.
"The local governments have also been gradually scrapping preferential policies for overseas investors."
The site in Kwai Chung would be attractive to watch, jewellery and food-processing companies, he said.