Hong Kong Investment Sentiment Cautious in 1H 2023 Amid High Rates
Local Investors and Owner-Occupiers Driving Transactions
Supported by Talent Policies, Emerging Sectors Such as Rental Apartments and Student Housing Set to Attract Investor Attention
Despite the border reopening, Hong Kong’s large-sized (exceeding HK$100 million) non-residential investment market had yet to rebound in the 1H period, constrained by the prevailing high-rate environment. The market was chiefly driven by local investors and owner-occupants seeking bottom-fishing investment opportunities.
Key Takeaways
- Total consideration stands at HK$18.1 billion for 1H 2023 as of June 15, for deals exceeding HK$100 million
- Despite the border reopening, the rising and high interest rate environment has weighed on investment sentiment
- Development sites have continued to lead the investment market (by consideration), while the number of hotel assets also witnessed a notable increase
- Total transaction volume is expected to record HK$50 billion, with local capital and end-users more active
- The pace of interest rate hikes and geopolitical risks will be the key factors determining the speed of market recovery
