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| Leading the field in upscale property development ( 01/10/2002 ) | |||||||||
Hong Kong's role as a services platform is enhanced as companies take proven SAR business methods to upscale developments in the Chinese mainland, to meet the expectations of an international clientele. Andrew Ness, director of global research and consulting for greater China at CB Richard Ellis, said Hong Kong property consultants are a valuable resource for overseas companies investing in Shanghai. "From the early 1990s and up to the present, Hong Kong property consultants have played an indispensable role in Shanghai. Initially this involved supporting the basic revival of the city's real estate industry, then assisting its property development sector to again become an object of international attention. "Our research teams introduced various analytical tools and methods to the Shanghai market, permitting prospective investors to gauge more accurately the risk levels associated with undertaking investment in the city, as well as the magnitude of reward potentially obtainable. "At the same these same property market analysts, deploying the tools of operational research which had been honed for years in assessing the finer workings of the Hong Kong property market, broke new ground in the late 1980s and early 1990s when they wrote the first reports to shed light on the supply and demand dynamics of the hitherto largely opaque Shanghai property market." Alexander Lam, executive director of professional services provider DTZ Debenham Tie Leung, said Hong Kong had enjoyed a first mover advantage in Shanghai's property sector, with developers such as Hutchison, Shui On, Henderson, Hang Lung, Orient Overseas, Wharf, and Lai Sun developing prestigious buildings in prime locations. He believes Hong Kong will continue to maintain its market share as a services platform. "The process of development, due respect to legal systems, project management skill, design and construction, marketing, sales and leasing skills and so on are the expertise that Hong Kong developers can bring to the mainland." Hong Kong property management company EastPoint is providing its technology in an upscale facilities management transfer at "super Grade A" commercial complex, the Bund Centre. The company sees the transfer as a model for future cross-border partnerships, managing director Keith Futcher said. "Providing working examples of high-end service quality that contributes to better returns on investment for developers and property owners will expand the China market for these services. "On our part, we are pleased to be working towards higher consumer expectations in China as this leads inevitably to the development of a market with sufficient economies of scale to enable our direct participation." International experience shines through
Harry Wong, a director of Wharf China Limited, said Hong Kong companies bring sophistication to the mainland property sector. "I believe that Hong Kong developers have contributed to the mainland property market in terms of the design of buildings, and the software of building management," Mr Wong said. "Our experiences in estate management, maintenance and marketing have assisted the development of management sophistication of Shanghai properties." Wharf had studied the Shanghai property market for several years before starting its first project, Shanghai Times Square, in 1996. The group has three more projects under planning - Wheelock Square, Wellington Garden and Parc Royal. "Shanghai is a vast market," Mr Wong said. "To be successful in Shanghai, you need to understand the demand and local culture, and offer the right product to the market. That is why Wharf studies the Shanghai market in depth before we roll out our projects." Shui On Group entered the Shanghai property development market in 1985, its first project being City Hotel, a joint venture, three-star international hotel. In 1997, the group completed Shui On Plaza, a Grade A office and commercial development. Another major development, Taipingqiao Redevelopment Project, is being completed in stages. This project incorporates Shanghai Xintiandi, where specialist food and beverage, retail, entertainment and cultural facilities modelled on Hong Kong's Lan Kwai Fong, along with recreational, commercial and residential amenities, are being created in restored "Shikumen" houses - a traditional form of architecture only found in Shanghai. This project won the Innovation China 2001 Architecture Award. Shui On is also developing a 40-hectare residential complex in the Hong Kou district of Shanghai. "Property development is a very localised business so Hong Kong developers should not simply apply Hong Kong's successful formula to the Shanghai market," said Henry Cheng, managing director, Shui On Properties Ltd. "However, Hong Kong developers' international exposure and marketing expertise would be helpful to producing innovative developments that meet market needs and help raise industry standards." The development of Xintiandi is a case in point, Mr Cheng said. "When Shui On first worked on the master planning of the project, we were convinced that as Shanghai develops into an international economic, financial, trade and transportation centre, it must create a quality of life conducive to attracting, developing and retaining top talents from abroad. We did thorough market research towards this end. "Our international exposure enables us to draw inspiration from projects overseas and to recruit foreign experts for the master planning and architectural design." Related links: | |||||||||
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