Sunnier outlook predicted for Hong Kong investment market in 2H14

There's going to be lots of action.

The investment market is expected to be more active in 2H14 compared to 1H14, representing a more positive outlook for this period.

According to CBRE’s report entitled "Hong Kong Investment MarketView 2Q14," with speculators driven out of the market by government policies, this represents a unique opportunity for those who take a longer-view on the market, such as end-users.

Likewise, landlords, who would otherwise prefer to sub-divide their assets for strata-title sale in a hot market, will be more likely to entertain en-bloc negotiations.

The report noted that this has already been seen in the office market following some big-ticket deals.

Here's more from CBRE:

A persistent lack of large contiguous space will continue to push large occupiers, who are looking to consolidate their operations, into the sales market as an alternative in their corporate real estate strategy.

Investment sentiment in Hong Kong's commercial real estate market improved in 2Q14 following a sluggish first quarter this year.
Total investment turnover for 2Q14, at HK$26 billion, more than doubled the volume of the previous quarter.

However, transaction volume for 1H14 was still down 41% from the same period last year as with banks still cautious towards real estate invesment lending.

More smaller transactions worth HK$300 million or below were recorded.