New business districts in decentralised locations across Hong Kong Island and Kowloon are springing up as a more cost-effective alternative to the traditional core Central area.
Kowloon East, encompassing a growing number of commercial buildings in Kwun Tong and Kowloon Bay, has emerged as the top choice for many companies in recent years, including established banking, insurance and financial businesses.
On the other side of Victoria Harbour, Hong Kong East is becoming a popular commercial area boasting major office buildings such as Taikoo Place and Cityplaza.
Simon Lo, executive director of research and advisory for Asia at Colliers International, says the big rental gap between the central business districts and new areas is the driving force behind the trend.
For many businesses, location is no longer a key concern, in particular where improved infrastructure has made commuting and transport easier, Lo says.
Kowloon East will become the second central business district, with the expansion of its office cluster following the completion of the government's Kai Tak redevelopment programme, he says.
