Media365
Hong Kong’s education sector, an emerging industry with full backing of the government, is starting to have an impact on the city’s prime office market as traditional tenants in finance continue to downsize their real estate footprint, according to analysts.
“Hong Kong’s grade A office market is entering a new phase of recalibration,” said Marcos Chan, executive director and head of research at CBRE Hong Kong. “The expansion of over 430,000 sq ft by education institutions and non-bank financial firms, alongside the recovered demand from retail-related and insurance firms, signals a dynamic shift in occupier demand.”
Although the education sector was not likely to surpass traditional major players in the office market as the largest tenant, it was likely to be more active than other industries, said Ada Fung, head of leasing and consulting at the consultancy.
“It’s a hot sector, and it’s growing … but it’s still a relatively small sector in Hong Kong,” Fung said. “I do not think in the next three years the education sector will surpass the financial and banking sector as the main tenants in Hong Kong, but it is still an important sector to look at.”
Compared with the banking and finance sector, which occupies 27 per cent of prime office space in Hong Kong, education, healthcare and the medical sector combined account for only 4 per cent.
