HK returns to top 10 cities for cross-border real estate investment: CBRE

Hong Kong dropped out of the list in 2021.

The latest survey Asia Pacific Investor Intentions Survey revealed Hong Kong has returned to the top 10 most attractive cities in the region for cross-border real estate investment after dropping out of the 2021 list, CBRE revealed.

Hong Kong ranked sixth this year, dropped out of the list in 2021, and ranked eighth in 2020.

It explained how international capital was lured into Hong Kong by repositioning opportunities and price discounts in the industrial and hotel sectors.

The survey also showed 60% of investors intend to make more acquisitions this year, with Tokyo, Shanghai, and Singapore being the top targets.

Head of capital markets Reeves Yan said, "Hong Kong's steady economic recovery, improved leasing momentum, slower rental decline, and high liquidity on the back of low financing costs helped commercial property investment volume rise by 51% to HK$79.5b in 2021 and surpass the pre-pandemic full-year total in 2019. The volume rose year-on-year in 2021 for the first time since 2017. Should the recent resurgence in local COVID-19 cases be contained within the first quarter of the year, demand for retail and hotel properties will strengthen in anticipation of inbound tourism. Stable leasing demand, shrinking stock, and low vacancy will ensure industrial remains the preferred asset class for institutional investors."

Strong demand from institutional investors and keen competition for industrial properties underpinned Hong Kong's investment market in 2021. Property funds and REITs spent a combined HK$21b on commercial properties over the year, the highest annual total since 2018.