2024-04-19 28Hse Editor
With the popularization of the Internet of Things, 5G networks, and cloud computing applications, the demand for data centers has become more and more intense, and its land and related properties have become one of the focus of market capital pursuit. The DTZ report pointed out that Hong Kong’s total investment in data centers in 2020 accounted for 54% of the Asia-Pacific market. At the same time, Hong Kong ranked fourth among the most attractive data center locations in the Asia-Pacific region. The recent high-priced data center land acquisition by China Mobile also reflects According to user demand, data center rents are expected to enter an upward trajectory, and there may be a 10% rent increase in 3 years.
Xiao Lianghui, Managing Director of DTZ Hong Kong, pointed out that data center investment in the Asia-Pacific region has continued to grow. Since the beginning of 2020, Hong Kong's total data center investment has accounted for 54% of the entire Asia-Pacific market, leading the regional market. The most notable transaction was China Mobile's acquisition of 5.6 billion HKD from the government for the development of an industrial land in Sha Tin for data center development. The floor price per square foot reached 5,967 yuan, which was 56% higher than the second price, creating a Hong Kong industrial land building. The record of the price per square foot. It can be seen that in the case of insufficient supply, buyers are eager to absorb land that can be developed as a data center in the market.
Tight land buyers are eager to absorb
Xiao Lianghui added that the rental return of the data center is about 3% to 3.5%. It is expected that the annual rent will increase by about 3%, and the rent will increase by 10% in three years, and the price will also increase accordingly.
The bank mentioned that Hong Kong has inherent advantages and is an ideal location for setting up a data center. According to the latest research, Hong Kong ranks fourth among the most attractive data center locations in the Asia-Pacific region, closely following cities such as Singapore, Sydney and Tokyo. Hong Kong is also one of the regions with the lowest taxes in the global data center market, with the lowest natural disaster factors. At the same time, optical fiber speed, market size, and electricityThe only disadvantage is the high land price.
The share of non-local operators is expected to increase
As of the second quarter of 2020, the total stock of data centers in Hong Kong has reached 7.9 million square feet, 80% of which are owned by ten data center operators, of which the two largest local operators, Sunevision and PCCW, have shared 31% The remaining 30% is occupied by non-local operators. DTZ predicts that the market share of non-local operators will increase in the next few years because some non-local operators have pre-leased or pre-purchased new supply spaces in the future.
Chuang Chengjie, assistant director of DTZ Research Department, said that the market will release about 4.2 million square feet of data center supply in the next four years, but about 82% of the new supply floor space has been absorbed by tenant operators or reserved by landlord operators for their own use. Supply is still very tight. Existing data center users are mainly financial institutions, banks, insurance companies, and telecommunications companies. It is expected that future data center demand will be led by large cloud service operators such as Amazon, Microsoft Azure, Google Cloud, Tencent Cloud and Alibaba Cloud.
Industrial building modification helps relieve supply shortage
Xiao Lianghui said that in addition to the purchase of data center land, the conversion of industrial buildings is also one of the sources of supply. The advantage is that buildings older than 15 years can apply for exemption from land premiums, but there are certain structural restrictions, such as 4 meters below the floor. Half, 300 pounds per square foot of the ceiling, etc., and not too close to residential buildings. Xiao Lianghui estimated that only about 1 to 2% of the industrial buildings in Hong Kong meet the requirements.
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