More private families and HNWIs to enter Hong Kong’s property investment market this year 

Learn  more about what to expect from Hong Kong’s property capital market in 2023.

From January to November 2022, data from Knight Frank revealed a total of 172 deals were recorded in the local market, equivalent to around HK$54 billion, down 35% YoY. 

Here’s more from Knight Frank:

In terms of property types, en-bloc industrial (24%) and development sites (24%) were the most active sectors, followed by en-bloc residential (20%). Hotel assets accounted for 12% of market transactions, with a total of six deals concluded in the first six months of this year. Office transactions continued to slow down, with only a few en-bloc office buildings changing hands. 

Low investment yields in Hong Kong, coupled with interest rate hikes, will make real estate funds or institutions difficult to underwrite deals and limit the number of transactions in 2023. In addition, investors will look for higher investment returns to cover the debt. It is believed that there will be more mortgagee sales or assets under receivership, and more distressed offices for sale.

As the residential prices and accommodation values drop, it is expected to attract developer interest. We expect more private families or high-net-worth individuals will enter the market in 2023 to look for the best real estate deals.