Hong Kong is a vibrant metropolis known for its bustling economy and strategic location as a gateway to Asia. For businesses looking to expand or establish a presence in this dynamic city, understanding the key neighborhoods is crucial. Below, we highlight seven prime locations that offer unique advantages for business expansion, including insights into demographics, local amenities, industry focuses, and key occupiers.
1. Central: The Heart of Business
Overview
Central is Hong Kong’s premier business district, housing major banks, financial institutions, and professional services firms. It boasts over 14 million square feet of Grade A office space, making it a hub for high-profile businesses.
Demographics and Amenities
- Workforce: Central attracts a highly skilled workforce, with many professionals commuting from various parts of the city.
- Amenities: The area is rich in dining options, luxury retail outlets, and cultural attractions. It also offers excellent public transport links, including the MTR and ferry services.
Industry Focus
Central predominantly serves the finance and banking sectors, with around 65% of its office space occupied by these industries. Businesses here benefit from networking opportunities and proximity to key decision-makers.
Key Occupiers
Some of the key occupiers in this area include HSBC, Bank of China, ICBC, Citibank, J.P. Morgan, and Standard Chartered.
2. Kowloon East: A Transforming Hub
Overview
Kowloon East, especially the Kwun Tong District, has emerged as a significant commercial area due to government initiatives to revitalize this former industrial zone. It features the largest cluster of Grade A office space in Hong Kong, totaling over 17 million square feet.
Demographics and Amenities
- Workforce: The area attracts back offices from the financial services industry due to its competitive rental prices compared to Central.
- Amenities: Kowloon East offers modern facilities, parks, and shopping centers, enhancing the work-life balance for employees.
Industry Focus
This district is becoming increasingly popular for the back offices of large financial services firms, thanks to its affordable office spaces and availability of Grade A office space.
Key Occupiers
Some of the key occupiers in this area include AIA Group, Manulife, Goldman Sachs, Citibank, and DBS.
3. Island East: Green and Spacious
Overview
Island East is known for its modern, green-certified buildings and spacious work environments. This district has seen a surge in demand from various sectors due to its attractive office offerings.
Demographics and Amenities
- Workforce: The area attracts professionals from IT, professional services, and fashion sectors.
- Amenities: Island East features waterfront parks, shopping malls, and restaurants that cater to diverse tastes.
Industry Focus
With an average building age of just 12 years, Island East is favored by decentralizing tenants looking for quality office space without the premium prices of Central.
Key Occupiers
Some of the key occupiers in this area include Meta, Yahoo, Kennedys Law, Ernst & Young, Boston Consulting Group, LVMH, and Kering.
4. Tsim Sha Tsui: Retail and Tourism Magnet
Overview
Tsim Sha Tsui (TST) is a bustling commercial area known for its retail shops and proximity to tourist attractions. Its proximity to Hong Kong-China intercity transportation such as the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) and China Ferry Terminal has also made this area popular with business travelers that need to commute between the cities frequently. TST remains one of the few submarkets where rental prices have remained stable due to the limited availability of premium office spaces.
Demographics and Amenities
- Workforce: TST attracts a mix of local residents and expatriates from China
- Amenities: The area is packed with high-end shopping centers, hotels, and Hong Kong-China transport links, including High-Speed Rail and China Ferry Terminals
Industry Focus
TST is ideal for businesses looking to capitalize on tourist footfall as well as the short commute between Hong Kong and China.
Key Occupiers
Some of the key occupiers in this area include Prudential, Ralph Lauren, Estee Lauder, Morgan Stanley, Equinix, and Meitu.
5. Wan Chai & Causeway Bay: The Technology Hub
Overview
Wan Chai and Causeway Bay are two interconnected neighborhoods that serve as vibrant commercial hubs in Hong Kong. Wan Chai has historically been an exhibition center while Causeway Bay is known for its retail prowess and the most popular choice for top technology firms.
Demographics and Amenities
- Workforce: These areas attract a diverse demographic including young professionals, expatriates, and tourists.
- Amenities: Both neighborhoods offer an abundance of dining options, shopping malls (like Times Square and Hysan Place in Causeway Bay), entertainment venues, and cultural attractions. The ongoing development projects aim to enhance pedestrian access along the waterfronts further enriching the local experience.
Industry Focus
Causeway Bay remains a top choice of technology firms looking to tap into young professionals who prefer to be in a more vibrant part of the city. Wan Chai is becoming increasingly relevant for businesses in the convention and exhibition industry due to ongoing redevelopment efforts aimed at expanding facilities.
Key Occupiers
Some of the key occupiers in this area include Amazon Web Services, Alphabet (Google), Alibaba, Apple, and Paypal.
6. Sheung Wan & Sai Ying Pun: The Blend of Old and New
Overview
Sheung Wan and Sai Ying Pun are two adjacent neighborhoods that offer a unique blend of traditional Hong Kong and modern development. Sheung Wan is known for its accessibility to Central, while Sai Ying Pun offers a more residential feel with a growing number of cafes and boutiques.
Demographics and Amenities
- Workforce: These areas attract a mix of local residents, young professionals, and expatriates drawn to the community atmosphere and unique offerings.
- Amenities: Sheung Wan and Sai Ying Pun feature a variety of shops, restaurants, and cultural attractions that cater to diverse tastes. The neighborhoods are well-connected to the rest of Hong Kong via the MTR and bus routes.
Industry Focus
Sheung Wan and Sai Ying Pun have been for asset management and securities firms that want to be close to Central CBD but the area also have recently seen an influx of startups, creative agencies, and small to medium-sized businesses. The neighborhood’s unique character and community vibe appeal to businesses seeking an alternative to the corporate feel and high rental cost of the main business districts.
Key Occupiers
Some of the key occupiers in this area include Guotai Junan Securities, CASH Financial, Caitong International Asset Management, China Galaxy International Securities, and Daniel Wellington.
7. Wong Chuk Hang: The Emerging Creative District
Overview
Wong Chuk Hang has transformed from an industrial area into a trendy hub for creative industries. This neighborhood offers unique office spaces that appeal to startups and innovative companies.
Demographics and Amenities
- Workforce: The area attracts young professionals looking for vibrant work environments.
- Amenities: Wong Chuk Hang features art galleries, cafes, and fitness centers that foster a creative atmosphere.
Industry Focus
This district is gaining popularity among design firms, tech startups, and media companies seeking flexible workspaces that encourage collaboration.
Key Occupiers
Some of the key occupiers in the area include Microsoft, I.T Group, Pacific Basin Shipping, Ferragamo, and DDB Group.
Conclusion
Expanding your business in Hong Kong offers a wealth of opportunities across its diverse neighborhoods, each with unique advantages. Central remains the financial powerhouse, home to major banks and institutions, while Kowloon East is emerging as a hub for back offices and tech firms. Island East attracts IT and professional services with its modern office spaces, and Tsim Sha Tsui serves as a retail and tourism magnet.
The interconnected areas of Wan Chai and Causeway Bay are thriving technology hubs, while Sheung Wan and Sai Ying Pun blend tradition with modernity, appealing to startups and creative agencies. Lastly, Wong Chuk Hang is becoming a go-to destination for design firms and media companies.
Choosing the right area to establish your business in Hong Kong can be challenging. It’s essential to consult with a local expert who can help you navigate the market and find the best fit for your needs. Please feel free to contact us for personalized assistance in identifying the ideal location for your business expansion!
