Concrete Analysis | Greater Bay Area diversity will drive property markets across Hong Kong, Shenzhen and Guangzhou
- Demand for residential and office space will see a strong growth across the three key Greater Bay Area growth engines of Hong Kong, Shenzhen and Guangzhou.
Hong Kong might have the world’s highest home prices, but it has become an unsurprising headline. But it was Shenzhen, not Hong Kong, that raised the most eyebrows, when the tech hub joined the top five priciest home markets in the world, according to CBRE’s Global Living Report in April.
This result was significant. Firstly, it reinforced the global credentials of Shenzhen. And secondly, it told us that an internationally high price tag has far more implications for individuals and businesses.
Shenzhen, along with Hong Kong, Guangzhou and Macau, sit at the core of the Greater Bay Area. As the long-awaited blueprint on the Greater Bay Area released earlier this year suggested, the region, empowered by these four cities, has the base and the promise of future growth to match it economically with other large bay economies in the world.
The roles of Hong Kong and Macau are clear. Despite the price tag, the sophisticated legal and finance systems in Hong Kong created a fertile ground for businesses and individuals to settle. This explains why most multinationals are still operating their regional headquarters in Hong Kong. Macau has already established a firm footing as a world-class tourism and leisure centre.
The strong fundamentals of Shenzhen and Guangzhou are recognised as well but less discussed in the context of their attraction to businesses and talents. This opinion is changing though.