COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Investment volume in Hong Kong bounced back in 4Q15

Previous three quarters were silent.

Following a muted first three quarters of 2015, the Hong Kong commercial property investment market (includes transactions over US$10 million and excludes pure land transfers) turned more active in Q4 2015.

According to a research note from CBRE, total investment surged 76.4% q-o-q to HK$32.7 billion.

Investment volume for the whole of 2015 stood at HK$95.5 billion, the highest recorded since 2012.

Here's more from CBRE:

The investment market became more active in Q4 2015 as property owners turned more willing to sell compared to previous quarters.

Landlords became more willing to sell and some of them became more flexible in pricing. End users remain the key demand driver of high quality assets. Also, 19 en-bloc transactions were concluded in Q4, more than in any such period in 2015.

Office assets continued to be the most popular among investors. Capital values for stratified offices edged up 0.7% q-o-q. Two big ticket deals—MassMutual Tower and the West Tower of One HarbourGate—highlighted Chinese buyers’ confidence in the Hong Kong office market and their willingness to look for spaces outside of the CBD.

A broad range of investors active in the industrial sector pushed up investment turnover more than fivefold q-o-q. Retail property sales remained active in non-core areas, despite the weak retail leasing market.

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