Thanks to Chinese investors' strong interest in the market.
In Hong Kong, commercial real estate market activity continued to be boosted by mainland Chinese investors' purchases, based on confidence fueled by relatively limited new supply and low vacancy rates.
According to a report by Real Capital Analytics, the total volume in Hong Kong reached $2.8b. Hong Kong and China are the only two markets currently with market share above their long-term average share of total Asia Pacific volume.
In contrast, volumes fell by 27% yoy in Japan, pushing its market share sharply below its long-term average.
On sources of cross-border capital, Chinese and Hong Kong investors are now the most dominant foreign source of capital in the region.
So far this year, Chinese investors have been heavily focussing on Hong Kong, where they purchased assets worth $3.9b, the strongest activity so far this cycle.
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