Hong Kong s Evolving CBD : A Planner s Perspective
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1 HKIS Annual Conference 2011 Central Business Districts in Hong Kong : Today and To-morrow 1 Hong Kong s Evolving CBD : A Planner s Perspective Jimmy C.F. Leung Planning Department 17 Sept 2011
2 2 Outline of Presentation What is CBD? How is HK s CBD changing? A historical perspective A functional perspective What drives office decentralization? How is the outlook?
3 What is CBD? 3 The heart of an urban area, usually located at the meeting point of the city's transport systems, containing a high percentage of shops and offices. High accessibility leads to high land values, and therefore intensive land use. Consequently, development is often upwards. Within the CBD, specialist areas, such as a jewellery quarter, benefit from external economies. Vertical land-use zoning is also common, so that retail outlets may be on the ground floor, with commercial users above them and residential users higher up.. Dictionary of Geography, Susan Mayhew
4 4 What is CBD? Conceptual rather than real Evolving in terms of space, functions and accessibility
5 The Evolving CBD 5 The early phase : a distinctive Central According to the report on the City of Victoria released by the then Director of Public Works in 1961: The City of Victoria (now known as the Central District) is at once the centre of business and banking life, of commercial transactions, of professional, administrative and cultural activity and, with the opening of the new hotels now under construction, will make a strong bid to re-assert its supremacy in the tourists and entertainment fields. Central in the 1950s
6 The Evolving CBD 6 The second phase (70s to 90s) : the Golden Triangle (expanded to Tsim Sha Tsui, Sheung Wan, Admiralty, Wanchai & Causeway Bay) Golden Triangle
7 The Evolving CBD 7 The third phase (from late 1990s): decentralization to non-cbd areas intensifies Quarry Bay Kwun Tong / KLN Bay West Kln
8 The Evolving CBD 8 Today s CBD under the HK2030 Study : 7.5 km 2
9 CBD and New Office Nodes 9 Kai Tak Development Kowloon Kwun Tong / Kowloon Bay Today s CBD Golden Triangle + West Kowloon Golden Triangle Quarry Bay Central Hong Kong Island
10 (Sources: Built-up Area : Compiled by PlanD Establishments & Persons Engaged : Number of establishments and persons engaged (other than those in the Civil Service) analyzed by industry section and TPU, C&SD, April 2011, with slight modifications Private Office Stock: Compiled by PlanD based on Property Reviews of RVD RHQs & ROs : 2010 Annual Survey of Companies in HK Representing Parent Companies Located outside HK, C&SD) Economic Primacy of our CBD 10 Built-up Area (263 sq.km) 3% 97% No. of Persons Engaged in major economic sectors (2.5M)* 26% 74% No of Establishments in major economic sectors (0.33 M)* Private Office Stock (14.3M sq.m in GFA) No. of Regional Headquarters and Offices (3,638) 24% 60% 54% 76% 40% 46% CBD Non-CBD 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% * Covered major economic activities. Exclusions: Civil service, some social and personal services, some self-employed persons, etc.
11 GFA( '000 sq.m) The Growth of Private Office Stock 11 CBD stock rose from 8.2 M in 2000 to 8.6 M in 2010 (+ 4.3%) North Point / Quarry Bay + Kwun Tong / KLN Bay stock rose from 1.5M to 2.7M (+84%) 12,000 10,000 8, Kwun Tong / KLN Bay North Point / Quarry Bay Tsim Sha Tsui & West. KLN , Wan Chai & Causeway Bay CBD 4, Sheung Wan , Central (Source: Property Reviews of RVD)
12 The Evolving Function 12 Growing concentration of Financing & Professional Sector in CBD Persons Engaged by Industry Type CBD Overall HK 2010 (2,473,000) 2000 (2,229,000) 2010 (649,000) 2000 (605,000) 33% 36% 28% 31% 14% 12% 30% 28% 11% 9% 43% 43% 14% 14% 29% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Import/export, wholesale and retail trades Financing and insurance & Professional, scientific and technical services Administrative and support services & Real estate Others (Accommodation, Food, Manufacturing, Education, Information, Arts, Transportation, Other Services etc.)
13 CBD Non-CBD The Evolving Function 13 The Financing & Professional Sector took up just 8% of the employment in the non-cbd areas Persons Engaged by Industry Type 2010 (1,824,000) 34% 8% 10% 48% 2000 (1,624,000) 38% 6% 7% 48% 2010 (649,000) 28% 30% 14% 29% 2000 (605,000) 31% 28% 14% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Import/export, wholesale and retail trades Financing and insurance & Professional, scientific and technical services Administrative and support services & Real estate Others (Accommodation, Food, Manufacturing, Education, Information, Arts, Transportation, Other Services etc.)
14 Central CBD The Evolving Function 14 Central becoming the central financial district Persons Engaged by Industry Type 2010 (649,000) 28% 30% 14% 29% 2000 (605,000) 31% 28% 14% 27% 2010 (183,000) 13% 57% 10% 20% 2000 (164,000) 15% 55% 13% 17% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Import/export, wholesale and retail trades Financing and insurance & Professional, scientific and technical services Administrative and support services & Real estate Others (Accommodation, Food, Manufacturing, Education, Information, Arts, Transportation, Other Services etc.)
15 15 Driving Forces behind Office Decentralization
16 Driving Forces behind Office Decentralization 16 Primarily driven by demand and supply Other factors include : infrastructure development, land use planning, private developers initiatives, government offices as catalyst, etc.
17 Kai Tak KLN Bay Kwun Tong West KLN Quarry Bay Buildings with Commercial & Office GFA >50% Buildings Existed in 2010 Buildings Existed in both 1998 & 2010 Metro Area 17
18 Land Use Planning as Facilitator 18 Building up a critical mass in West KLN : potential office GFA of 0.6M m 2 GFA ICC GZ-SZ-HK Express Rail Link Terminus West Kowloon Cultural District
19 Land Use Planning as Facilitator 19 Integrated transport-land use planning
20 Land Use Planning as Facilitator 20 OU(Business) zoning since 2000 to allow a mix of office, commercial and non-polluting industrial use
21 Kwun Tong / KLN Bay Office Node 21 OU(B) zone (68 ha) introduced in 2001 facilitates transformation : Office GFA tripled from 0.4 M m 2 in 2000 to 1.4 M m 2 in 2010
22 Kwun Tong / KLN Bay Office Node 22 Other Planning Measures Building setback Footbridge connection Landscaping Waterfront beautification
23 Kai Tak Office Node 23 Kai Tak Development : about 14 ha of land planned for business/commercial developments Gov t Offices Cluster Kai Tak Station
24 Private Developers Initiatives 24 Create prestigious office clusters at target locations Anchor companies Proposed elevated walkway system in KLN East
25 Government Offices as Catalyst 25 Quarry Bay North Point Government Offices completed in 1998 Private offices in North Point / Quarry Bay up by 39% Private Office ('000 GFA m 2 ) % Change North Point / Quarry Bay 918 1,276 39% CBD 7,894 8,582 9% North Point Government Offices
26 The Quarry Bay Office Node Taikoo Place Gov t Offices 26
27 27 Potential office node in Wong Chuk Hang in the longer term Major Drivers : South Island Line (East) scheduled for completion in 2015 OU(B) zone: about 8 ha tourist & amenity attractions nearby L hotel Island South Wong Chuk Hang Station One Island South
28 The Outlook 28
29 Further consolidating the CBD 29 To strive for early delivery of new sites Proposed Office Sites at the New Central Harbourfront
30 Further consolidating the CBD 30 To make available sites through redevelopment Wanchai Police Married Quarters Wanchai Government Offices Compound
31 Further consolidating the CBD 31 To redevelop government multi-car parking sites and bus terminus Murray Road Carpark Rumsey Street Carpark Bus Terminus adjacent to Shun Tak Centre
32 The Outlook 32 HK as a Global City Gateway into China and Asia Markets for global capital Favourable base for MNCs Command & Control Centre Concentration of advanced producer services Growing demand for office space Further growth of CBD and office nodes
33 The Outlook Larger CBD around the harbour in the long run Growing specialization of function - Central as CFD 33
34 Vibrancy and Diversity 34 Important to preserve mixed uses to sustain its vibrancy and diversity
35 Area Improvement 35 Source : Enhance public space and streetscape by government and private sector
36 Building Rehabilitation 36 Operation Building Bright Facelift to buildings Improve living environment for residents Maintain social mix
37 Preservation of Historic Buildings 37 Adaptive reuse of historic buildings Adding character to the neighborhood Co-existence of old and new buildings to enhance diversity
38 Thank You 38
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