It's the highest half year proceeds on record.
According to CBRE, strong interest in development land has seen total land sale proceeds from government land tenders reach over HK$100 billion in 1H 2017, the highest in a 1H on record.
The successful sale of the Murray Road Carpark site at a record high price has boosted sentiment in the office investment market. Landlords have become increasingly aggressive with their asking prices immediately since the sale, slowing down the overall transaction volume.
Here's more from CBRE:
The investment market in 1H 2017 was the most active it has been in the past 4 years, with HK$50 billion worth of commercial property assets changed hands, translating to 58% of last year’s total investment proceeds.
Unlike recent quarters where investment interest was more on office assets, investor appetite was more balanced in 1H 2017, with interest in all four asset classes – retail, hotels, industrial buildings and office.
Big ticket transactions, involving properties worth HK$77 million or above, increased by 43% y-o-y.
In 2H 2017, any interest rate hike is expected to be mild and gradual, with limited impact on investment demand and capital value growth in the short-term future.
The investment pace of Chinese capital is expected to remain slow until there is a relief in the offshore investment control measures.
Local developers might choose to dispose some of their non-core assets while institutional investors look for value-add investment opportunities.
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