Concrete Analysis | Infrastructure key to developing new central business districts in Hong Kong
Development plans under way to provide faster and easier access to the east and west of HK
Commercial activity in Hong Kong has historically been concentrated in central Kowloon and the northern coast of Hong Kong Island. However, the next 10 to 20 years will see the emergence of new decentralised commercial hubs to complement the traditional core business districts.
These hubs, in the east and west of Hong Kong, will be connected by infrastructure networks, many of which are under construction or at the planning stage.
The development of this new infrastructure will be crucial in improving intra and inter-city connectivity, which is essential to ensuring the city's long-term economic growth.
The new infrastructure will extend the boundaries of the city's real estate market, facilitate the decentralisation of commercial activity, and strengthen business ties with cities in the Pearl River Delta.
Several areas have been identified as future commercial nodes. There will be a heavier focus on east Hong Kong, with Kwun Tong, Kowloon Bay and Kai Tak set to be transformed into the so-called CBD 2. The focus of development will then shift to the west, with various cross-border infrastructure and township developments planned in locations such as Lantau, Tuen Mun and New Territories West.
Commercial real estate in many of these areas is still underdeveloped, partly because these locations are perceived to be relatively remote. They also lack amenities to support advanced business activity.
The government is aware of these issues and is planning railway and road links to support the development of these future commercial nodes.