Will Kowloon West become the heart of HK's office market?
Colliers said 29% of the next five-year Grade A office supply will be coming from the area.
Businesses looking to establish or upgrade their office should start looking into Kowloon West where multiple developments are underway.
A report by Colliers said Kowloon East is expected to be becoming one of the fastest-growing Grade A office submarkets in Hong Kong, especially with the construction of two government projects, Lantau Tomorrow Vision and Northern Metropolis.
The firm said the two mega projects will pave the way for different office clusters to develop around Kowloon Station, Cheung Sha Wan and the New Development Areas (NDAs) in the New Territories.
Currently, there is only one Grade A office building in the Kowloon Station Area, which is strategically located at the junction of the Tung Chung Line, Tuen Ma Line and cross-border XRL.
In the next five years, however, it will supply the second-highest amount of new Grade A office facilities (2.4 million sq ft) after Kowloon East, equivalent to 17% of the total new Grade A supply in Hong Kong between now and 2026.
Colliers added that 29% of the next five-year Grade A office supply (2022-26) will also be coming from Kowloon West. The supply's total size in the district is also expected to increase from 6 million sq feet in March 2022 to 9 million sq feet by 2026.
By 2026, the district will also have 11% of the entire city's Grade A office stock.
“The focus of the city’s future developments is going to shift from the East to the West over the next two decades amidst the bigger integration within the Greater Bay Area (GBA) development. We believe the emerging office clusters in Kowloon West will become alternative flight-to-quality locations, supported by the relatively low rents compared with the CBD and the new supply of high-quality buildings,” said Rosanna Tang, head of Research, Hong Kong & Greater Bay Area.