Creating value from ‘forgotten spaces’ in Hong Kong’s unique urban ecosystem
- Not enough focus given to creating more value in Hong Kong’s built environment amid rush to deploy new technology in smart buildings
- New York’s High Line offers valuable lessons on city stewardship that prioritises people while raising property values at the same time
For far too long, Hong Kong’s growth engine has been primarily derived from appreciation of real estate. That is seen in the industry’s over-dependence on traditional asset management methodologies for increasing profit over time. There are also sometimes irrational premiums for thinly substantiated brand and value propositions in commercial buildings.
With the need to chase the latest in technology, investors and developers now run the risk of forgetting just who all these “smart” building solutions in the city are for.
We have not focused enough on actually creating more value in our built environment. We must now look beyond those four walls, and consider a building’s context, how it relates to the street, the “spaces in between”, and for ways to create new shared value that prioritises people.
Take a look at the creation of the High Line in New York, which has unlocked the potential of the once-gritty and industrial Meatpacking District. Its two neighbouring districts, along the entire length of the West Side of Manhattan, is now one of the world’s most desirable commercial and residential submarkets.
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What was once an abandoned elevated railroad was transformed, through the brave advocacy of some ordinary citizens, into one of the world’s most iconic public spaces. New investment and development opportunities arose when this significant urban amenity was unveiled.
In Hong Kong, our density and multidimensional mixed-use urban fabric often result in forgotten pockets of “spaces in-between”.
We should consider how building for a better civic experience and creating new mechanisms for district stewardship actually drive more value and resilience in the city. This has the capacity to unlock the true potential in what is already an unparalleled urban ecosystem.
One such area that could potentially benefit from this kind of approach is Duddell Street, a unique oasis in the heart of our historic and primary core business district. The street culminates in Hong Kong’s version of the Spanish Steps in Rome, the broad granite steps and gas lamps being a remnant of our built heritage.
Though surrounded by some of the most valuable real estate in the world, Duddell Street itself is often forgettable. Reduced to a goods-loading street, illegal vehicle parking and unsightly ventilation and mechanical systems also eat up its precious street frontage.
Most obvious to the pedestrian is how each building entrance and lobby presents to the street. One has to step up or down to enter the buildings along this sloped street, making access that much challenging for users.
What is not obvious, however, is that the buildings themselves are no longer considered premium assets. They trade at a discount and command weaker rents than those just across Queens Road.
What if Duddell Street is “pedestrianised” as part of a holistic repositioning and development scheme, with inviting street-facing retail, food and beverage scene, pleasing landscaping, and public seating areas for passive enjoyment?
What if there was local street management to restrict loading hours, enforce parking rules, and implement smart curbs to allow safer sharing with pedestrians? What if the iconic gas lamp steps are activated on a regular basis with weekend film screenings, live performances, and other community uses?
What are the opportunities for civic innovation that bring the best of place-making and place-keeping practices into the heart of Hong Kong?
Finally, might there be interesting interconnected spaces along the street that blur the lines between public and private, indoor and outdoor, that can provide new commercial and cultural opportunities?
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The future of real estate is all about permeability. At a basic human level, places need to be inviting and allow for freedom of movement, both into and out of a building.
This does not mean that walls do not exist, rather, we should rethink the barriers, both perceived and real, when it comes to who we allow into our private spaces. Creating new kinds of public spaces in our vertical city should be a priority, as well as truly allowing for public uses in streets and “spaces in-between.”
Some of the best performing retail properties in the world function as public space in many ways. For example, Apple stores are truly community hubs for learning, socialising and, of course, consuming Apple products. It no longer refers to its retail outlets as stores, but as “Town Squares”.
Why cannot we adopt this approach for our office lobbies? Could Duddell Street become one of the world’s greatest streets, where commercial spaces command a premium for its direct access to one of the most inviting public spaces in Hong Kong? Surely that is a vision worth realising.
Tiffany Lau is head of urban ecosystems at JLL Asia-Pacific
