Nigel Smith is the Managing Director of Colliers International Hong Kong. 

As a member of the Colliers International Asia Leadership Team Smith he is responsible for the strategic direction of the Hong Kong business, specifically in leading growth and diversification initiatives, and developing leadership talent.

He oversees all service lines as well as shared services including investment sales, office leasing, strata-title sales, project management, retail leasing, industrial property leasing, residential leasing and sales, valuation and advisory, research, marketing and communications, human resources and finance.

WILLIAMS MEDIA spoke with Nigel Smith about his experience in the real estate industry, specifically looking at Hong Kong's residential and commercial property markets, and his unique leadership and staff wellness initiatives. 

Tell us about your role at Colliers International and your experience in the real estate industry that led you to this point.

Prior to joining Colliers International in 2015, I worked with JLL and CBRE for 25 years, specializing in the design, branding, marketing and leasing of “Tall Buildings” and mixed-use developments in Asia. I was lucky enough to work with super-tall towers including TAIPEI 101, 2IFC and ICC Hong Kong, Ping An IFC Shenzhen and China World Tower Beijing.

At Colliers, I have enacted a transformation strategy to re-position the business as an enterprising and creative agency. Starting with a clear vision that set measurable goals to achieve after 2 years, 3 years and 10 years. I am delighted to report that we have already over-achieved our targets, resulting in double-digit YOY growth. This cements our position as a leader in the Hong Kong real estate market.

To achieve this, we focus on our people, our clients and the community we live in.

In your 30 years' experience in the property and real estate industry what drivers have caused the biggest change in the Hong Kong market?

The first driver was when Deng Xiao-Ping made a southern tour to Guangzhou and Shenzhen in 1992, where he talked about commencing trading with the rest of the world. This was an indication that China was looking for global recognition.

The second driver was Hong Kong being the first to enter the Asian economic crisis and the last to come out in 2004.

In 2004, the decision by the financial sector to position Hong Kong as a key hub and put Hong Kong on the global map which rebooted the property market after SARS. This is the third key driver.

Outline and summarise the overall property trends in Hong Kong's residential and commercial markets.

The overall property trend has been very positive as the fundamentals of the Hong Kong economy have been strong. This has been underpinned by the Government’s investment in incredible infrastructure projects, which will continue to bring opportunities through the Greater Bay Area Initiative.

While the residential market is very stratified, and some sectors will grow faster than others, overall sentiment has been positive. This has been reflected in the commercial market as all sectors, particularly office and industrial, have seen strong gains over the past few years.

What are your thoughts on the drivers of high land and property prices in Hong Kong?

The overarching challenge Hong Kong faces will always be a lack of land supply. With a desire to live and work within a 1-hour radius driving demand for transportation-led developments.

Whilst we see interest rates rising slowly, I believe that we will remain in a low-interest rate environment that will keep Hong Kong’s competitiveness.

Is anything being done to cool the market? Why or why not?

Yes, the Government has several cooling measures in place because of the lack of land supply, which is currently being reviewed by the Government through the task force. Examples included a vacancy tax on unsold new flats, and delinking of the pricing mechanism of subsidised housing from private market levels. However, with the persisting land shortage problem, property prices will continue to fluctuate in a narrow band.  

What are some of the more notable deals/transactions that have taken place this year from your office and the market in general?

Some notable deals that Colliers have completed this year include:

• KR Space at one Hennessy & K11 Dockside,
• The Executive Centre at 3 Garden Road and The Prosperity Centre,
• Rider Levett Bucknall at Goldin Financial Centre,
• Gilead Sciences at Hysan Place,
• Lazy Bug Studio at Two Harbour Square,
• WeWork at Cityplaza 3,
• Sainsbury's at Mapletree Baypoint and
• Campfire at Harbourfront Landmark.

Notable transactions that have occurred in the market include:

• Shanghai Pudong Development Bank at One Hennessy,
• KR Space at Times Square,
• Baker Mackenzie at One Taikoo Place,
• Bitmex (45/F) at Cheung Kong,
• EY at One Taikoo Place,
• Goldman Sachs at Lee Garden Three,
• ANX at Lee Garden One,
• VF Sourcing,
• Cigna,
• Tricor Service & HSBC at Mapletree Baypoint,
• China Merchants Bank at Three Exchange Square,
• DBS at Two Harboursquare,
• KR Space at The Center,
• AIA Insurance at Hopewell Centre,
• FT Life at FT Life Tower in Kowloon Bay.

Which property types and trends are becoming favourable to investors?

Strata-title office and en-bloc office followed by mid-tier hotels in non-core CBDs.

Is the international investor market strengthening or weakening?

The international investor market continues to remain active.

How are interest levels from China impacting property prices in Hong Kong?

Interest levels from mainland Chinese have shifted towards more local demand for residential. For commercial, the appetite to purchase large office towers for visibility has waned in part due to the lack of options.

What are your thoughts on the Greater Bay Area Initiative and the opportunities it brings?

I believe the Greater Bay Area Initiative brings in a great deal of new opportunities benefiting Hong Kong and many industries in general, including the real estate sector. With the completion of new infrastructures including the Express Rail Link, and the upcoming Hong Kong–Zhuhai–Macao Bridge and local railways such as Shatin-Central link, the time of travel within Hong Kong and with neighbouring cities will be shortened, supporting further growth in the economy and property market. We can see that Tuen Mun, Yau Tsim Mong and Lok Ma Chau are three upcoming districts that will define Hong Kong’s future as a business, knowledge and cultural hub.

Tell us more about your management style, specifically the HR and staff wellness initiatives you have established.

In Colliers, we focus on our people and we have launched the BE Colliers employee brand to engage our employees and attract new talent as well as the broader community excited about the opportunities that Colliers has to offer. BE Colliers demonstrates how our workplace culture is modelled after people’s drive to constantly improve themselves to be creative and to be bold.

We support diversity and inclusion and have more recently been working with a local consultancy SENsational to offer internship and/or employment opportunities for people with disabilities.

We care about providing our employees with an inspiring and creative space to work in, our office has undergone renovation recently adopting concepts under WELL Building StandardTM 2.0, including the introduction of air quality monitoring, greenery in the office, and natural lighting, etc. to enhance our health and well- being while at work.

My management style is based upon the belief that every individual in our business has an important role to play and it’s important to find their best fit. Helping others be the best they can is essential in creating the appropriate mix of culture, fun and business acumen. Empowering individuals and providing platforms for teams to grow are as important as the abilities to listen, communicate and collaborate. Finally, having a passion for what you believe in is essential and I encourage our people to have a healthy work-life balance.

For more information about Hong Kong's real estate market, phone or email Nigel Smith, Managing Director of Colliers International Hong Kong, via the contact details listed below. 

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