Steady Growth in Hong Kong Investment Activities in 1H 2022
Full-Year Transaction Volume Expected to Reach HK$70 billion
Industrial Assets and Development Sites to Be Sought-After
East Rail Line Extension to Drive Future Capital Appreciation in Adjacent Districts
Impacted by the fifth wave of the pandemic, investment activities in Q1 2022 slowed, dampening the large deal transaction (deal size of over HK$100 million) count in the quarter. However, although this period has delayed investors’ decision making, it has not diminished investment confidence in the city. Investment activities in Q2 picked up demonstrably, showing promising signs for a further recovery in the second half of the year. The full year's transaction volume is expected to reach HK$70 billion, with industrial assets and development sites continuing to be sought-after. Meanwhile, the opening of the East Rail Line cross-harbor line will also benefit and spur capital appreciation for adjoining properties.
Key Highlights
- Total consideration stands at HK$21.4B so far, expected to hit HK$28B in 1H 2022
- Industrial, hotel and development sites are sought after, funds have been active
- Funds-local operator JVs anticipated, eyeing value-add assets especially among industrial and hotel assets
- Total transaction volume expected to reach HK$70B, surpassing 2019 and 2020 levels
- Interest rates, geopolitical risks and capital market fluctuation are the key factors determining the speed of recovery
