Real estate helps to reshape HK’s cultural landscape

The synergy between real estate development and cultural proliferation, particularly in music and performing arts, offers an opportunity for Hong Kong to elevate its global stature. This often-underestimated collaboration has the potential to generate substantial economic and societal benefits for the Asian metropolis.

Music’s global ascendancy never wanes. According to the International Federation of the Phonographic Industry (IFPI), global recorded music grossed USD28.6 billion in 2023, representing a 10.2% y-o-y growth, with revenue increasing in every region. Despite the prevalence of streaming platforms, live music persists as an irreplaceable facet of the industry. PwC predicts that Hong Kong’s live music revenue will reach USD201 million in 2024, surpassing the pre-pandemic benchmark of USD121 million reported in 2019, with projections indicating further expansion to USD216 million by 2028, at a 2.34% CAGR. This trajectory encapsulates the latent potential for real estate ventures that incorporate music-centric elements.

Embracing the worldwide trend, Hong Kong is making strides in establishing culture-and-lifestyle-centered real estate. The prominent Kai Tak Sports Park, a retail-sportstainment complex featuring a world-class stadium seating up to 50,000, exemplifies this movement. This development, together with existing venues like Freespace and Wonderland in West Kowloon and the upcoming ‘Skytopia’ by the Airport Authority, showcases a coordinated effort to enhance the city’s cultural offerings.

Private sector initiatives are also driving this cultural renaissance. For instance, Sun Hung Kai Properties has developed AXA Dreamland in Go Park Sai Sha, while Hysan Development and Chinachem Group plan a 20,000 sq ft performance venue at Lee Garden 8. Moreover, Swire Properties dedicates space in their Taikoo Place portfolio to regular cultural entertainment events, revitalising the working demographic and environment in the area.

The transformative power of music in urban environments is palpably evident in the gentrification of areas such as Sham Shui Po, Wanchai, and Sheung Wan. These localities have witnessed the emergence of more music-oriented establishments, ranging from vinyl emporiums to thematic gastronomy venues, fundamentally redefining their essence and allure. Despite the closure of iconic music and performance venues like KITEC, Hidden Agenda, and Peel Fresco Music Lounge, and the conclusion of HMV Hong Kong’s retail business in 2018, the necessity to sustain music-focused spaces is epitomised by the resurgence of Lost Stars Livehouse Bar & Eatery in K11 Art Mall and the notable entry of Singapore’s Simply Live by Tin Box into the city last year.

Major events such as Clockenflap, Creamfields and high-profile concerts by international stars like Coldplay are invigorating Hong Kong’s music scene. The economic ramifications of these events, similar to the ‘Swiftonomics’ phenomenon—where local spending was significantly boosted—could be tremendous for the economy.

To capitalise on these trends, real estate owners, particularly shopping centre landlords, could adopt more flexible leasing strategies, transforming traditional retail spaces into multifaceted destinations that offer engaging experiences resonating with evolving consumer preferences. Integrating music and real estate presents a unique opportunity for Hong Kong to regain its mojo, ultimately strengthening its position as a global art and cultural hub.