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Hong Kong should not doubt its attractiveness as a top financial hub, said Christian Ulbrich, CEO and president of Chicago-based JLL, during his visit to the region
April 23, 2024 | Staff Reporter | Hong Kong | Property Management
Despite losing some of its marks of status as a world-leading property market, Hong Kong retains many advantages upon which it should capitalise to find its niche in a rapidly changing world, according to the global head of real estate services firm JLL. The city’s property market has relinquished many of its crowns in recent times, including its status as the world’s priciest retail strip, the world’s most expensive market for luxury homes and the world’s most expensive office property market. However, even after four challenging years of social unrest, pandemic restrictions and intensifying geopolitical tensions, Hong Kong should not doubt its attractiveness as a top financial hub, said Christian Ulbrich, CEO and president of Chicago-based JLL.
“There’s no need to be concerned,” he said. “It’s a question of how you can play to your strengths going forward. And therefore, I wouldn’t even make that comparison whether it is still the number one capital for luxury goods or whether it’s the number one capital for this or that. It’s overall a pretty outstanding location, and pretty outstanding locations will be successful.”
In the country as part of an Asia-Pacific tour including visits to Singapore and Australia, Ulbrich said his first visit to Hong Kong since 2020 has reminded him of the quality of the infrastructure, the amount of capital and the high level of talent available here. “If I had to make a comment on how Hong Kong perceives itself, I wouldn’t look back, I would look forward,” Ulbrich said. “I wouldn’t be too worried about whatever role Hong Kong played in the past. I would be focused on what role Hong Kong can play going forward, and it’s very hard to find a place in the world with such outstanding infrastructure.” Hong Kong’s location and connection to mainland China is a large and enduring advantage, according to Ulbrich. “It’s a gateway for capital into the second-largest economy of the world,” he said.
Amid interest rates at a level not seen since 2007 and a sluggish economy due in part to the slow return of tourists, both residential home prices and shop rents are down; the former hit an eight-year low in February and the latter ended 2023 10% below their pre-pandemic peak. Meanwhile, one of the longest streaks of double-digit office-vacancy rates has been under way since late 2022 as tenants give up space even as new buildings bolster supply.
Ulbrich conceded that Hong Kong might be a bit more challenged than other cities given that China’s economy has not recovered as strongly as many had anticipated and that flexible work arrangements had an impact on companies’ real estate requirements.
Hong Kong remains a major market in JLL’s worldwide network.
