Meanwhile, local consumption's driving the retail market.
It has been noted that the number of property investment transactions above HKD100 million (USD12.8 million) increased substantially in Q3 2016 with the largest increases in residential, strata-title office and en-bloc office transactions.
According to a research note from Colliers International, Chinese investors have remained very active in Hong Kong, since investment in the territory provides a simple way to hedge against the possibility of continuing RMB depreciation over the medium term.
“Asia remains stable in contrast to global uncertainties in the Eurozone and the US, therefore investors need to re-assess their risk exposure, and this has led to higher demand for Asian properties,” Antonio Wu, deputy managing director, Hong Kong, said.
Here's more from Colliers International:
The outlook for the retail market remains gloomy due to the fall in tourist arrivals and weaker sales. As a result, both rental and capital values are under pressure.
“The focus should shift to local spending as we have seen signs of growth in this segment back to the 2012 level. To remain competitive, retailers should offer authentic shopping experience, introduce niche brands to the market and make good use of social media for promotions,” Cynthia Ng, director of retail services said.
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