There is a growing dilemma in Hong Kong, with people protesting against a shortage of land and high property prices on the one hand while, on the other hand, refusing to consider proposals to rebuild some older buildings in order to satisfy the growing need for urban accommodation, claiming that they need to safeguard their collective memories of historic buildings! I need to highlight the fact that it is also not always feasible to build more on other available sites as, these days, the public is also against tall and/or screen-like buildings from a building environment angle.
I would agree that memories and sustainable building environments are important, but equally important is a good balance between idealism and practicality. If the criticisms concern property prices (and rents in the case of commercial offices) reaching high levels and land availability in urban locations being severely limited, I do see the need to make some compromises.
The current market upcycle is, of course, the combined result of many demand-side factors, although the fact that Hong Kong is running short of new and future property supply (particularly in the city centre locations) is definitely a catalyst, pushing prices and rents high. Although the Government is responding (finally) to the public’s cry for more new development sites, fewer public protests against high-density developments, especially in urban areas, will definitely help to further ease the supply-side pressure.
Land is always a scarce resource, especially in a densely populated city such as Hong Kong. I believe that the public’s continued insistence on placing harsh constraints on the very limited land available for development in the city is not a sustainable solution that will lead to good collective memories in the future.
About the author
Marcos Chan is the Head of Research for Jones Lang LaSalle in Greater Pearl River Delta, based in Hong Kong.
