Modern Australian
Men's Weekly

.

Cushman & Wakefield's Response to Budget 2023/24

HONG KONG SAR - Media OutReach - 22 February 2023 -

Response to Budget 2023/24 by Mr KK Chiu, International Director, Chief Executive, Greater China of Cushman & Wakefield:

Land policy

Housing has always been a major concern for Hong Kong citizens, Cushman & Wakefield is pleased to see the Government is actively creating land to increase the land supply in the market.

As mentioned in the Budget, 12 residential sites are covered in the 2023-24 Land Sale Programme, and it is estimated that the potential land supply for the whole year will provide 20550 units. However, in view of recent failure of Government land sales bids, Cushman & Wakefield suggests that the Government review standard land price and bidding price to make sure they are on par with market situation.

Cushman & Wakefield agrees that the Northern Metro Area is a new engine for the future development of Hong Kong. To accelerate the development of the area, we suggest that the Government set up phased indicators for new development areas in Yuen Long South and Hung Shui Kiu in order to speed up their planning and development. We also suggest that the Government prioritise on land consolidation and planning of industrial park construction.

Light Public Housing

The Government has identified 8 sites for the construction of Light Public Housing, Cushman and Wakefield agrees this measure could fill the short-term gap of public housing supply. At the same time, in order to address the public's concerns over recovery of land designated for light public housing, we suggest that the Government publish a clear timeline for land recovery, and may consider putting some of the light public housing sites on the land requisition list. This will convey a clear message to the market that "the sites currently planned for the light public housing are only temporary", thereby giving the public confidence that the sites will be put back on the market again in the near future.

Response to Budget 2023/24 by Mr John Siu, Managing Director, Cushman & Wakefield Hong Kong

Logistics land use

With the Financial Secretary proposing in his Budget Speech to further promote Hong Kong as an international maritime center and a "smart port", Cushman & Wakefield believes that more logistics sites will need to be reserved to support import/export and storage of goods in the future. We suggest that the Government could consider relocating the existing brownfield operators to suitable logistics sites in the Northern Metropolis, to better consolidate and enhance the land usage within the area.

Nevertheless, land sales driven by public tenders might push up development costs and rents, making them less affordable for the existing brownfield operators. Currently, warehouse rents in Hong Kong increase annually by around 5%. Whilst the monthly rents of modern multi-story warehouses/industrial buildings range between $12 and $17 psf (in terms of GFA; efficiency ratio around 50% to 70%), those in brownfield sites in the New Territories range from $13 to $15 psf (in terms of saleable area), creating a rental gap of around 50%.

Data Center

We are pleased to see the Government committing resources and introducing various measures to promote the development of smart cities and a digital economy. The data center industry is one of the cornerstones of Hong Kong's digital economy, and we suggest that the Government should adopt a progressive approach and release data center sites, of about 200,000 to 300,000 sq feet, in popular data centers areas, such as Kwai Chung, Tsuen Wan, Tsing Yi, Sha Tin, Fanling and Tseung Kwan O, every one to two years according to the market demand-supply dynamics, to attract more data center operators to set up in Hong Kong and develop Hong Kong into an international data center hub.

We also advise that the Lands Department should consider waiving the requirement to build a public car park in the Conditions of Sale for data center sites. The government departments should also liaise in advance with the power supply providers to ensure sufficient electricity supply for the site, so as to enable the data center to have a reliable and stable supply of electricity upon completion.

Response to Budget 2023/24 by Ms Rosanna Tang, Executive Director, Head of Research, Hong Kong of Cushman & Wakefield:

Housing market prediction and stamp duties

Cushman & Wakefield supports the Government's adjustments to the value bands of the ad valorem stamp duty(AVD), easing the burden on ordinary families and first-time buyers on purchasing their first residential properties through the broadening of the AVD (Second Standard Rate) bands, particularly small and medium residential units under HK$ 10 million. Although house prices have experienced a downturn over the past three years due to the on-going pandemic, with resumption of cross-border travel between Hong Kong and the Mainland this year, it is expected that both the macro-economy and buyer's sentiment will improve. We had noticed a gradual pick-up in house viewings and transactions in the market. With the Government's adjustments of the AVD, Cushman & Wakefield is expecting the overall property prices will rebound by 5-10% in 1H23.

Response to Budget 2023/24 by Mr Kevin Lam, Head of Retail Services, Hong Kong of Cushman & Wakefield:

Digital Consumption Voucher

We are pleased with a re-run of the consumption voucher scheme which will give a boost to local F&B and consumption and speed up the recovery of the retail market.

International events to attract visitors could help reviving the shop market

As Hong Kong and the rest of the world lift all travel restrictions and gradually ease pandemic measures, Cushman & Wakefield supports the government in setting aside $100 million for holding more megaevents to attract visits and promote tourism in Hong Kong, and the Hong Kong Tourism Board to spend more than $250 million to continue to organise and promote the megaevents. We remain conservative yet optimistic about retail rent this year but will need to evaluate changes in the spending pattern of mainland and overseas visitors. We expect more apparent changes in retail rent in 2H23.

Promote Urban Sports

We are pleased to welcome the government's support for the further promotion of urban sports. The number of 24-hour fitness centres has doubled to over 100, and the number of private indoor climbing centres has increased to over 20 last year. Many shopping centres have added skateparks, climbing walls and running facilities to attract visitors. The government's increased support is in line with the national extensive mass fitness program, it also provides a good basis for the diversification of Hong Kong's shopping malls, adding a new perspective that Hong Kong is a healthy and energetic tourism option to attract overseas visitors.

(Click here for high-res pictures)

Hashtag: #Cushman&Wakefield

The issuer is solely responsible for the content of this announcement.

Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. Across Greater China, 23 offices are servicing the local market.
The company won four of the top awards in the Euromoney Survey 2017, 2018 and 2020 in the categories of Overall, Agency Letting/Sales, Valuation and Research in China. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, valuation, and other services. To learn more, visit or follow us on LinkedIn ().

How to Save Smart: Cheapest Travel Insurance for Schengen Visa without Cutting Corners

Picture this: you’ve found a last-minute flight to Milan, your hotel booking comes with breakfast and a rooftop view, and your itinerary is ready ...

Keeping Lone and Remote Workers Safe: Employer Duties and Practical Solutions

In Australia, thousands of employees work alone, in remote locations, or in direct contact with the public every day. While these roles are critical...

How Your General Dentist Supports Your Smile Over a Lifetime

A healthy grin is more than just a desirable feature; it reflects overall health, well-being, and self-esteem. Our oral health needs evolve from chi...

A Brighter Smile in Sydney: Expert Cosmetic Dentists and Veneers Solutions

A confident smile can open doors, boost your self-esteem, and leave a lasting impression. In Sydney, more people than ever are turning to cosmetic den...

How To Keep Vase Flowers Fresh Through Australia’s Coldest Months

Winter flowers develop slowly, which gives them stronger structure and longer vase life Heat from indoor environments is the biggest threat to th...

Artificial Intelligence is Powering the Growth of Australian Telehealth Services

Many Australians have traditionally experienced difficulties in accessing timely and quality healthcare, especially those who live in rural or remot...

VR Training in Australia – Customer Service Risk Management

In today’s rapidly evolving workplaces, Australian organisations are turning to immersive learning tools like VR to handle specialised needs such ...

Powering Shepparton’s Businesses: Expert Commercial Electrical Services You Can Count On

When it comes to running a successful business, having reliable, compliant, and efficient electrical systems is non-negotiable. From small retail ou...

Maximise Efficiency: Cleaner Solar Panels for Optimal Performance

Solar panels are a smart investment in energy efficiency, sustainability, and long-term savings—especially here in Cairns, where the tropical sun ...

7 Common Air Conditioner Issues in Melbourne – And How to Fix Them

Image by freepik Living in Melbourne, we all know how unpredictable the weather can be. One moment it’s cold and windy, the next it’s a scorchin...

Powering Palm QLD with Reliable Electrical Solutions

Image by pvproductions on Freepik When it comes to finding a trustworthy electrician Palm QLD locals can count on, the team at East Coast Sparkies s...

The Smart Way to Grow Online: SEO Management Sydney Businesses Can Rely On

If you’re a Sydney-based business owner, you already know the digital space is crowded. But with the right strategy, you don’t need to shout the...

What Your Car Says About You: The Personality Behind the Vehicle

You can tell a lot about someone by the car they drive—or at least, that’s what people think. True Blue Mobile Mechanics reckon the car says a l...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just abou...

Understanding Level 2 Electricians: Why Sydney Residents Need Licenced Experts for Complex Electrical Work

When it comes to electrical work around the home or business, not all electricians are created equal. In Sydney, particularly when you're dealing wi...

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...