Hong Kong office investment down 21% in Q1

Investment activity was concentrated in several mega-sized office deals.

Colliers says Hong Kong’s property investment market remained anchored by office and accommodation assets in the first quarter, with sustained end-user demand supporting major transactions despite a slowdown in office investment volumes.

According to Colliers, office investment transactions above HKD100 million totalled HKD8.7 billion in Q1, down 21% quarter-on-quarter from a high base in Q4 2025. Activity was concentrated in several mega-sized office deals, including acquisitions by JD Property and City University of Hong Kong, highlighting continued end-user interest in the sector.

The consultancy said the hotel and serviced apartment segment outperformed during the quarter, with Q1 transaction value reaching around 80% of total full-year 2025 volumes, underscoring strong investor appetite for accommodation assets.

Retail investment also recorded modest quarter-on-quarter growth, driven by acquisitions from two Chinese restaurant groups purchasing retail podium space, Colliers said.

Looking ahead, Colliers expects the office and accommodation sectors to remain the key drivers of Hong Kong’s investment market. The agency noted that office assets continue to trade at deep valuation discounts, creating attractive entry opportunities for end-users as prime rents show early signs of stabilisation.

Meanwhile, accommodation assets are increasingly viewed as a defensive value-add strategy, particularly among investors seeking exposure to policy-supported education growth.

Colliers added that despite ongoing geopolitical tensions in the Middle East, investor sentiment toward Hong Kong has become more constructive, with the city increasingly perceived as a safe-haven market offering pricing with a margin of safety. The consultancy said lower HIBOR levels, trending toward 2%, together with renewed capital inflows, are supporting stronger demand for stabilised, income-yielding assets.