Yes, because Hong Kong is a global gateway city.
High costs are why many people are starting to share resources, including physical spaces.
Sharing apartments was common when I was a boy. And what about student halls of residence, homes for the elderly and department stores?
Sharing real estate allows for the more effective use of space, facilitates better networking and improves synergy for occupiers.
Historically, people shared space mainly to save money. But now, people are doing it for other reasons, such as to improve collaboration and develop their business.
Technology is enabling the rapid sharing of information and supporting the growth of the sharing economy. Information about space that is available to share, and the costs and benefits of doing so, is just a few clicks away.
HOW DO PEOPLE FIND OUT ABOUT SHARED FACILITIES?
Will shared space work across all property sectors?
You make some good points.
I think it will best suit the
With space being so limited, innovative and cost effective real estate will always attract strong demand.
But is shared real estate really feasible in Hong Kong?
Corporates and start-ups have been the main driver of demand for co-working space and this trend will likely continue.
The way people work and how business gets done is changing dramatically.
The format, function and design of offices is evolving rapidly. Smart and flexible workspaces are the future.
Currently, co-living is not necessarily a long-term solution for most people. They may like to try out co-living space for different reasons such as affordability, lifestyle and networking, but they may not stay there permanently.
Providing multiple locations for staff frequently on the move.
Minimising administration and facilities management costs.
Accessing innovative business infrastructure without requiring CAPEX.
Securing flexible lease terms.
The government’s efforts to boost housing supply should improve the demand-supply balance in the medium-to-long term, meaning that affordability will gradually ease.
However, Hong Kong’s population of 20-29 year olds will fall by 200,000 people to 720,000 over the next ten years, meaning that the demand pool will shrink significantly.
Tenants in co-living spaces are typically in their 20’s.
Co-living is only a temporary solution.
Are they not competing directly with each other for tenants?
Demand for co-living spaces mostly exists when rents and prices are unaffordable. In contrast, there are many strategic reasons why companies use co-working space, making it more substainable than co-living.
why would landlords want to lease space to co-working operators?
Landlords can benefit from having co-working space in their buildings.
Co-working centres can enhance buildings
Landlords can capture demand from both corporates and start-ups. Co-working operators often lease multiple floors in office buildings, thereby forming an important new source of office leasing demand.
are also based on the same concept. Demand is also expected to
Co-working centres can also play a role as business incubators. Over time, start-ups can grow to become larger businesses and eventually need larger and independent offices.
Co-working centres can serve as an important amenity by hosting corporate events and activities for other tenants in the same building.
Data centres and self-storage
What other types of shared spaces are there?
Developers and landlords need to think carefully about how people will use space.
Ultimately, space needs to be more flexible.
Will all spaces need to be shared?
So, how will these trends shape the Hong Kong real estate market in the years ahead?
Fit-out offices to facilitate agile working.
For co-working operators, offer business consultancy and consider to invest in start-ups.
Fit out buildings with latest technology to facilitate agile working.
Maximise flexibility by exploring the potential use of shared space.
Understand occupiers’ needs and address their concerns.
For co-living operators, keep an eye on demographic changes.
Explore downstream services.
Look into the possibility of equipping buildings with multi-usage floors.
Be flexible and embrace agile workplaces.
Create communities for occupiers – where possible, enable them to work, live and play under the same roof.
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Elsewhere around the world, many governments are supporting the development of the shared economy and are willing to facilitate regulatory reforms.
There are still some major challenges.
New technology and industries are evolving so quickly that regulations cannot keep up. This may lead to legal and building safety issues.
Let’s do it!
There are plenty of opportunities out there but you need professionals like myself to help you take advantage of them.