Hong Kong real estate investments hit nearly US$9b to date

The en bloc industrial and retail property sectors dominated the transactions.

The real estate investment market has shown promising performance throughout 2021 with a total of 136 deals closed to date, compared to 97 deals in 2020. 

According to Knight Frank, the investment market has recorded HK$70 billion (approx. US$8.9 billion) of transactions to date, with en bloc industrial property and retail property making up the biggest percentage. Among these, hotel property saw particularly strong sales activity in Q3 and Q4. 

“Nevertheless, the foreseeable increased supply and limited return for office buildings have left investors with considerable reservation about buying en bloc office buildings. Moving forward to 2022, we believe there will be growing investment interest in funds/private equity funds, residential, data centres and hotels. We foresee Chinese mainland developers selling properties due to their financing positions, which will increase supply in the market,” said Antonio Wu, Knight Frank’s Head of Capital Markets, Greater China.