What’s the most sought-after real estate asset in Hong Kong?

These assets accounted for 38% of property investments in Q3. 

Commercial real estate transactions in Hong Kong amounted to HK$19.8billion (approx. US$2.5 billion in Q3 2021 (deals worth over 77 million, excluding pure land or related transactions). According to CBRE, this represents a 28% decline from the previous quarter, when volumes were elevated because of the HK$10.5 billion KITEC sale in Kowloon Bay. 

A huge portion of these investments (38% or HK$7.6 billion) were funnelled into industrial assets. This figure already surpassed the total consideration of industrial transactions in 2019 and 2020 combined. 

Meanwhile, the office sector accounted for 29% (HK$5.9 billion) of the investment volume in Q3. 

CBRE says property funds remained active this quarter, spending HK$3.6 billion on commercial properties. Major deals included Silkroad paying HK$1.1 billion for multiple floors in Hang Wai Industrial Building in Tuen Mun. 

Reeves Yan, Executive Director, Head of Capital Markets, CBRE Hong Kong, said: “The ample availability of capital ensured a high level of purchasing power in Q3 and further down the line in 2021. Counter-cyclical assets such as shopping malls, street shops and hotels as well as en-bloc industrial assets with transformation or redevelopment potential will continue to interest institutional and local investors alike.”