Hong Kong is 3rd top source of cross-border property investments

Hong Kong firms directed US$4.9b in capital to Chinese real estate properties.

Hong Kong is the third biggest source of cross-border capital in 2023, with over US$3.83b invested in properties globally in the last six months of the year, according to a report by Colliers.

The United States (US$12.74b) and Singapore (US$5.63b) are the only two other markets to have invested more than Hong Kong. 

By asset class, Hong Kong firms invested US$1.77b in multifamily properties, US$959m in office properties, and US$625m in industrial properties worldwide.

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Most of the capital flowed to China, with US$2.47b of Hong Kong’s capital going to properties in China in H2. With US$2.45b invested in H1, this meant that Hong Kong firms invested a total of over US$4.9b in Chinese properties.

Hong Kong firms also invested a lot in Australia (US$169m in H2; US$668m total) and in Japan (US$247m in H2; US$506m in total).

“Asia Pacific performed best in 2023, with investment volumes reaching 91% of their 10-year average,” said Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific.

“The APAC region’s performance was backed by a significant pick-up in investment activities in Q4, primarily in December, signaling the region’s strong potential for recovery in the year ahead,” Pilgrim added.