Piers Brunner of Colliers International is 'amazed' by the business efficiency of Hong Kong

'Prior to coming to Hong Kong (in April 1999) I had been working for Colliers in Indonesia. The CEO was generous and noted that if I was going to be in Asia I really should try to get in the thick of it - so he offered me a position to be based in Hong Kong, but doing a regional role.

I was asked to run Colliers' corporate services division, which is hubbed out of Hong Kong for two important reasons: firstly, because of its large concentration of corporate headquarters - and our market is working with multinational companies in managing their property portfolios -; and secondly, because from a logistical point of view, there is no doubt that Hong Kong is the hub of the region. Access to the airport is second to none, and the availability of competent, hard-working staff makes Hong Kong a natural choice.

Of course, it was very different to Indonesia and even to London for that matter. What struck me was the efficiency and transparency of the business environment, and how easy it is to get things done. Hong Kong is a place where decisions are made, and the lack of frustration - from a business point of view - amazed me. You can have 10 meetings in a day in Hong Kong, whereas in other countries, two meetings would be good. From a family viewpoint, we also found it very easy to settle down.

The cusp of opportunity

In 2002, I was asked to take over the running of the Hong Kong office. It was a difficult time for the property market, as Hong Kong was still finding its position and status in the new China, but opportunity was evident because Hong Kong people love real estate. It's the one commodity most people have an interest in; it props up the stock market; it generates a lot income for the government.

We had a very strong 2004 but we are looking at 2005 as being a banner year for real estate. Of course, the volatility of the market can be extreme - and this reflects the pace of Hong Kong generally, and the sheer liquidity of the market - but people have confidence in the business environment. Banks are lending at competitive rates, and investors are ploughing money into real estate again.

Fundamentally, what absolutely underpins Hong Kong is the rule of law. If something is contractually wrong, or morally or legally wrong, there are means of redress, and they are transparent, open and fair. This is very important in real estate where there are so many contracts involved.

International reputation

Hong Kong has become a leading financial centre, which makes it easier for major multinational companies to trade. From a geographical point of view, as an airline hub and a port hub, Hong Kong is absolutely there. The growth of its imports and exports, and particularly re-exports, is still extremely strong. Productivity is high, the tax system is easy to deal with, and business is not overly regulated.

A key feature of the Hong Kong property market is that it is now beginning to be well respected by the institutional market. It is not just Hong Kong developers who are investing in Hong Kong. Now, a much broader group of people are satisfied Hong Kong property is a good investment, so overseas funds - such as the Macquarie Bank, Lend Lease Corporation and even Singapore investors like ARA Asset Management - are choosing Hong Kong as a secure investment for their funds. Institutional investment from overseas funds has more than doubled in a year, and this growth will continue as the ownership structure broadens - again, a reflection of increasing confidence in Hong Kong. 

Of course, the property market is cyclical so a more modest rise in the market may be preferred.  We need to have a bit of a plateau, but Hong Kong has been through this before and has the ability to grow and upgrade by continuing to challenge itself. As China develops on the real estate side, Hong Kong will play a complementary role. So apart from any unforeseen circumstances, we predict that the short to medium term will be very positive indeed.'

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