Hong Kong Development Chief Says Northern Metropolis Space Won’t Add Traditional Offices

Secretary for Development Bernadette Linn Hon-ho told the Legislative Council on Thursday that the Northern Metropolis’ planned economic floor space should not be viewed as traditional office supply.

Linn said the incoming supply in the megaproject was primarily intended for the innovation and technology (I&T) sector.

The megaproject, located next to the Shenzhen border, is expected to provide 1 million square metres, or 10.8 million square feet, of economic floor space over the next five years.

She said that space was unrelated to traditional office supply, addressing concerns about the effect of the development on Hong Kong’s already struggling office market.

Concern over office vacancies

Linn was responding to a question from Augustine Wong Ho-ming, a lawmaker representing the real estate and construction sector.

Wong raised the issue during a debate on the city’s first five-year plan and annual policy address.

He voiced concern that the additional commercial floor space planned for the Northern Metropolis could aggravate already high office vacancy rates in non-prime locations.

The concern focused on whether new commercial space from the megaproject could add to existing pressure in parts of the office market where vacancy rates are already high.

Linn’s response distinguished the planned economic floor space from conventional office development by stressing its primary link to the I&T sector.

Her clarification came as lawmakers considered the city’s broader five-year plan and annual policy address, with the Northern Metropolis’ scale and location forming part of the debate.

Source: South China Morning Post