Hong Kong's CyberPort project to attract strong demand: analysts
2001-04-22
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Property analysts expect strong demand for Hong Kong's information technology park project, The CyberPort, developed by Pacific Century CyberWorks.
Application for tenancy at the HK$16 billion project began on Friday with monthly rental rates pegged at between HK$11 and HK$13 per square foot.
So far, 270 companies have expressed interest in becoming tenants, more than what the IT park can actually accommodate.
Big names like Cisco, IBM and Microsoft have all signed up.
In an effort to create a high tech centre and to lure the hottest tech companies, the Hong Kong government is offering rents at the CyberPort well below rates for similar industrial spaces in the SAR.
Property watchers liken CyberPort attractive prices to an implicit subsidy.
"HK$11 to HK$13 is a reasonable price, you can't compare it directly to prime locations like Central or Wan Chai. But if you look at the islands, rental prices are around $20 to $25," said Edmond Lee, strategist, Sun Hung Kai Securities.
When completed, the Cyberport will feature state-of-the-art telecom infrastructure, housing between 150 and 200 companies.
The government is providing the land for the project free of charge, while Pacific Century CyberWorks is paying almost HK$16 billion to develop it.
Construction started in May last year and the first phase is set to be launched in early 2002.
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