Commercial property investment volume rises 44% YoY to US$1b in 3Q23

Year-to-date, however, volume fell by 7% YoY to US$5b.

Commercial property deal activity increased by 44% YoY to US$1b in Hong Kong in 3Q23, according to an MSCI report.

MSCI, however, pointed out that jump was partly due to the fact that volume last year was the lowest in more than a decade.

Meanwhile, MSCI said price declines have slowed in recent quarters even though capitaliszation rates remain well below 10-year bond yields.

"Retail is the one sector in Hong Kong that has perked up slightly compared with recent years, with investment volume in the third quarter reaching the highest level since 2019," Benjamin Chow, head of Asia Real Assets Research at MSCI, said. 

The increase in the retail sector was "largely on the account of more-significant price adjustments on offer, as average yields have expanded 40 basis points from their recent low," said Chow.