Hong Kong property investment volume drops 9% in Q3

The YTD total is only 56% of 2024’s total.

According to data from a CBRE report, total investment volume in Hong Kong’s real estate market (deals involving commercial real estate over HK$77 million) fell by 9% quarter-on-quarter to HK$8.6 billion, bringing the YTD total to HK$24 billion, representing only 56% of the full-year total for 2024.

“Despite the decline in investment volume, the number of transactions increased by 94% quarter-on-quarter to 33,” the report said.

Here’s more from CBRE:

End-users remained active, accounting for 34% of total investment. Major deals included the Employees Retraining Board buying six floors at First Group Centre in Kowloon Bay for HK$478 million.

Investors continued to show interest in hotel and single-owned residential assets with student hostel conversion potential on the back of favourable government policies and the existing supply-demand imbalance.

Reeves Yan, Executive Director, Head of Capital Markets, CBRE Hong Kong: “For Q3 2025, end-users remained active, accounting for 34% of total investment volume which were all in office and retail sectors. Local investors demonstrated a solid interest in hotel and single-owned residential properties. Property funds are also returning to the market, specifically targeting student hostels conversion opportunities. Looking ahead, commercial real estate investors are anticipated to maintain a cautious approach due to the continued elevated HIBOR. Investment activity will primarily be driven by end-user demand and financially stressed owners who need to sell assets to meet their loan obligations.