Commercial property deal volume falls by 38% YoY in Q3

This marks HK’s first contraction after four consecutive quarters of expansion

The volume of Hong Kong’s commercial property deals fell 38% year-on-year in the third quarter (Q3) to $14.8b (US$1.9b), Real Capital Analytics (RCA) revealed in its Asia Pacific Capital Trends report.

RCA said this is the first decline in Hong Kong’s deal volume after four consecutive quarters of increase.

Benjamin Chow, RCA’s head analyst for Asia, attributed the decline to the “lack of big deals closed” within Q3.

HK's office yield has also not improved, according to RCA, saying that it has marginally lowered to about 10 bps from 12 months ago.

On the other hand, HK’s commercial real estate investment market has seen growth with deals below $500m doubling in the first nine months, compared with last year.

(1 HK$ = US$$0.13)