Hong Kong property investment transactions down 24% to US$2.4b in Q3

This is due to a skewed comparison base as major deals were completed in the previous quarter.

A low interest rate environment combined with a consistent improvement in the labour market continued to aid an economic recovery in Hong Kong. According to Colliers, as investor confidence grew, so did transaction volumes in the industrial segment, which saw the finalisation of six en-bloc sales. 

“Hong Kong recorded investment transaction volumes to a tune of HKD18.9 billion (USD2.4 billion), down 24% QoQ. The drop can be attributed to a skewed comparison base as the result of a few big-ticket deals worth over HK$1 billion transacted in Q2,” Colliers added.

Here’s more from Colliers:

Investment appetite for the industrial sector remained strong and recorded a 20% QoQ growth in transaction volume. Hotel properties also attracted more capital, which helped the sector record its highest quarterly sales amount, USD202 million, since Q2 2020.

Some developers actively off-loaded their non-core assets while there were cases with retail users took the sales-and-leaseback approach to realise capital gains. Meanwhile, institutional investors remained active, accounting for 63% of transactions in Q3.

Despite ongoing border restrictions, recent GDP and labour market data underline Hong Kong’s consistent and solid recovery, which is helping to strengthen investor confidence in the city’s property market. The industrial, neighbourhood retail and strata-offices segments will continue to attract investor attention even as low interest rates and ample liquidity lend support to the market. Transaction levels are expected to be further boosted by real estate funds working on mandates to deploy capital before the end of 2021