Hong Kong real estate transaction value up 2.5% to HKD9b in Q3

Office assets led the investment activity during the quarter.

Following the HKMA’s intervention to support the currency peg, a Colliers report revealed that the aggregate balance has declined steadily since July 2025. HIBOR rebounded from under 1% in Q2 to above 3% in Q3.  

Here’s more from Colliers:

Deals over HKD100 million rose sharply from 12 in Q2 to 30 in Q3, driven by hotel and retail. However, total transaction value only edged up 2.5% QoQ from HKD8.7 billion to HKD9 billion. Mortgagee sales and capital-loss disposals comprised 37% of Q3 transaction value.

Office assets led Q3 activity, with Mike Cai Wensheng’s acquisition of 20-28 Cannon Street for HKD750 million being a highlight. Year-to-date, the office and hotel sectors surged 33% and 152% YoY, showing strong demand for discount opportunities.

Market Outlook

The widely expected rate cut took place in September, and the market anticipates two more 25 bps cuts in Q4, which would lower borrowing costs further, enhancing the appeal of high-yield properties as prices begin to stabilise.

The 2025 Policy Address lowered the New Capital Investment Entrant Scheme’s residential real estate threshold from HKD50 million to HKD30 million and raised the cap for qualifying investments from HKD10 million to HKD15 million, potentially boosting interest in luxury residential, strata offices and street shops.

Family offices and funds are eyeing the accommodation sector, driven by sustained demand and an emerging pipeline of conversion projects.