Infrastructure set to Enhance HK's Connectivity
Hong Kong has enjoyed solid economic growth over the past decade, with real GDP increasing by over 46% between 2004 and 2014, thanks in part to Chinese government-backed schemes such as the Closer Economic Partnership Arrangement (CEPA), Individual Visit Scheme (IVS), and most recently, the Shanghai-Hong Kong dual-market stock trading arrangement. This growth has stimulated strong demand for commercial real estate space in the city and has necessitated the construction of new bridges, roads, railway systems and other transportation infrastructure to support it.
Hong Kong has a long history of trading with international countries. These strengths have allowed the city to play a crucial role at the forefront of the development of the Greater Pearl River Delta (GPRD) region since China launched its “open door” policy in the late 1970s.
Hong Kong-PRD ties continue to grow:
While Hong Kong has helped the Chinese economy connect with the rest of the world, it has also benefited in recent years from a number of preferential economic policies implemented by the government of the PRC. Indeed, economic ties between Hong Kong and mainland China will strengthen further in the future. Integration within the GPRD is the key theme under the 12th Guangdong Provincial Five Year Plan (2011-2015), which includes major initiatives such as facilitating Hong Kong and Macau’s cooperation with other PRD cities in developing modern services industries and upgrading existing manufacturing sectors.
By building an extensive regional and cross-border infrastructure network, authorities plan to improve connectivity and establish one-hour commuting zones within the GPRD.
A “golden tourism triangle” will be formed between Hong Kong, Macau and Hengqin following the completion of the Hong Kong-Zhuhai-Macau Bridge. Commercial ties will also be enhanced between the business CBDs of Hong Kong, Qianhai, Futian and Guangzhou as road and rail connectivity is enhanced.
Source: For the full infrastructure outlook report by CBRE research please visit: http://bit.ly/1guSlpA