Investment market records drop in number of transactions in 1Q16

But there were still some big-ticket deals.

It has been noted that in the investment market of Hong Kong, the number of transactions fell significantly across all sectors in 1Q16.

According to a research note from CBRE, there were just eight deals in the office sector and seven involving retail properties. The expiry of the industrial revitalisation scheme at the end of March prompted less interest in the sector, with just three transactions registered for the quarter.

The sector saw investment turnover plummet from HK$6.5 billion in Q4 2015 to just HK$362 million in Q1 2016, the lowest quarterly total since Q3 2008. No hotel transactions were recorded this quarter, the first such instance since Q1 2009.

Here's more from CBRE:

CBRE Highlights Q1 2016: Commercial real estate investment turnover fell to HK$21.8 billion in Q1 2016 (including transactions over US$10 million, excluding pure land transfers), but is still 83% higher than the same period in 2015.

Less transactions were recorded across all sectors this quarter. No hotel transaction was recorded, the first time since Q1 2009. Demand for office properties from end-users and mainland Chinese corporates remained solid, with several big-ticket transactions recorded this quarter.

Developers and local investors were active in acquiring old commercial buildings or units for redevelopment. The impact of the US interest rate hike on the Hong Kong property investment market was minimal, while further rate increases in the near term are unlikely.

Capital values for strata titled offices edged up 0.8% q-o-q; capital values for high street shops further dropped by 5.1% q-o-q; warehouse capital values registered a 1.7% q-o-q increase.