Super Typhoon Ragasa lashed Hong Kong with hurricane-force winds and torrential rain on Wednesday.
In Hong Kong, huge waves crashed over areas of the Asian financial hub's eastern and southern shoreline, submerging some roads alongside residential properties.
At outlying islands including Lantau, home to the city's international airport, widespread flooding was seen, swamping beaches and vegetation.
"Areas which were previously sheltered may become exposed...seas will be phenomenal with swells," the observatory said.
Ragasa, packing winds of up to 200 kph (124 mph), will be closest to the city in the next few hours, around 100 km (60 miles) south of the densely populated territory.
Hong Kong issued the typhoon signal 10, its highest warning, early on Wednesday, which urges businesses and transport services to shut down.
Authorities have warned of rising sea levels, saying they could be similar to those seen during Typhoon Hato in 2017 and Typhoon Mangkhut in 2018, both of which caused billions of dollars in damage.
"The water level will reach the maximum around noon (0400 GMT)," generally to around four metres (13 feet)," the observatory said.
The emergency management ministry dispatched tens of thousands of tents, folding beds, emergency lighting equipment and other rescue supplies on Tuesday, Chinese state media reported.
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