End-user demand activity drives subdued Hong Kong investment market in 1H14

Higher stamp duties also affected the market.

The investment market remained largely subdued in1H14, with activity mostly driven by end-user demand and focused mainly on emerging areas.

According to a release from JLL, higher stamp duties imposed by the Government continued to weigh on the market, but it was worth noting that investors looking for long-term investmentswere coming back to the market despite the higher transaction costs.

The release also said that the total value of investment across the four key property sectors amounted to HKD26.5 billion in 1H14, representing a 23% growth compared to 2H13.

Here's more from JLL:

Capital values held relatively firm on the back of the positive response to commercial land sales, with the strongest growth recorded in industrial markets bolstered by investor interest in the refurbishment and redevelopment of older industrial properties.

From January to May, a total of 97 properties priced over HKD 100 million (excluding land auctions) were sold, up 24.4% from 78 transactions recorded in 2H13.

The retail sector attracted the greatest amount of investment capital, with total consideration accounting for about 37% of the whole market, followed by office (27%), residential (26%)and industrial (10%).