International property consultants have identified Shenzhen as the primary growth node in the Greater Bay Area (GBA) as its concentration of highly innovative and technically-advanced industries could help stimulate economic development in related businesses and industries. BA’s next stage of growth will require the development of a strong service sector, specifically financial and professional services.
Continued role of Hong Kong as a financial hub will support the office demand. GBA companies in the tech and manufacturing segments looking to compete for market share on the world stage, Hong Kong will be a preferred location where essential functions such as finance, research and marketing are housed.
GBA initiatives have helped to drive rapid growth in the TMT and finance sectors, leading to a significant surge in absorption in both the Guangzhou and Shenzhen Grade A office markets in the last five years. In Guangzhou, absorption are expected to rise by 40% or more in the next five years while the rate in Shenzhen may rise as high as 50% over the same period. While the unfolding coronavirus situation means that office demand in GBA may face strong pressure in the short term, medium-to-long-term growth predictions remain favorable.