Concrete Analysis | ‘Greater Bay Area’ could take the heat out of Hong Kong’s property market
The enhanced transport links between Hong Kong, Macau and nine cities in Guangdong may help ease the city’s land-shortage woes, says CBRE’s Tom Gaffney
All attention was on President Xi Jinping’s economic agenda for China as the Boao Forum in Hainan province drew to a close nearly four weeks ago. Few noticed there was a panel discussion running simultaneously, in which Hong Kong Chief Executive Carrie Lam, Guangdong’s governor and other political and business heavyweights debated plans for the “Greater Bay Area”.
Limited detail has emerged so far, but one theme is beyond doubt – the Greater Bay Area aims to break geographical boundaries to foster economic collaboration in the southern China powerhouse.
Officially launched by the Chinese government last year, the Greater Bay Area initiative is a plan to link nine cities in Guangdong province plus Hong Kong and Macau to form an integrated economic and business hub. The area serves as the economic engine of southern China, which holds a critical position in the national economy.
Area accounts for around an eighth of national GDP. Compared with other nations, its GDP alone would be ranked 12th in the world – larger than that of Australia, according to a study by CBRE Research in 2016.
There has been plenty of discussion about the new opportunities it may create for Hong Kong. The property sector has already identified some obvious advantages likely to stem from the new levels of connectivity.
