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Real estate concerns dishearten Google, drops USD $300 million Hong Kong task

Internet giant Google has actually chosen to call off its information center project in Hong Kong after being prevented by the high operations costs and real estate acquisition issues which have always been a worry to any designer who endeavors into the city's real estate market.


Google's strategy to establish a website in the world's most costly real estate market forms part of its undertaking to broaden facilities in Asia, following the tremendous Net traffic development seen in the region. Such strategy was announced in 2011 where it also mentioned Singapore and Taiwan as its target areas for the growth of information centers.

Nevertheless, the company just recently chose to scrap its USD $300-million Hong Kong website task and cited the expense of operations and the problem to acquire roomy land as primary reasons. Nevertheless, Google said that it would remain to invest and grow in Hong Kong.

"To keep up with the quick development in users and use throughout the region, we have to focus on locations where we can construct for economies of scale. Sadly, there is an absence of land for growth in Hong Kong. We will continue to work closely with the government on this process and will continue to invest and grow in Hong Kong," The Next Web priced quote Google officials as stating.

The Hong Kong site was supposed to work along with the information centers being established in Taiwan and Singapore to enhance the speed of Google services in Asia by up to 30 %. Nevertheless, as the Hong Kong plan has been reserved, just the sites in these 2 Asian countries are expected to end up being operational by next year.


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