Overseas business executives focused on business in Greater China have been moving to Hong Kong in increasing numbers over the past 18 months to explore opportunities in the Chinese mainland, boosting sectors of the property market in the SAR, according to international property firm Colliers Jardine.

The company’s regional residential director Anton Eilers said luxury serviced apartments had been in greatest demand, with prime apartments running at 75-85 per cent occupancy.

“China's accession to the World Trade Organisation (WTO) has resulted in wide interest among foreign companies,'' he said. ``We are finding a lot of companies with no previous involvement with Hong Kong or the mainland are coming to Hong Kong to explore the China market. They choose Hong Kong because it is the regional centre. Hong Kong has all the company infrastructure, such as legal services, financing and information.''

Mr Eilers said many of the overseas firms moving in to Hong Kong to prepare for the China market were in the banking, insurance and logistics sectors. ``These are areas which will continue to open up now that China is in the WTO. For some companies, Hong Kong is used as a staging post, where staff become acclimatised to the region.''

Much of the interest at the luxury end of the property market has come from European and American businesses, but many Japanese managers are also heading for Hong Kong to diversify their businesses. According to Hiroko Byrne, director and general manager of Principles Property Agency, Japanese companies are looking for opportunities outside Japan because of the weak economy at home. ``They are mostly manufacturing companies including electronics and engineering businesses, and some trading companies.''