Commercial real estate volume drops 10% YoY to $12.56b in Q1

Most transactions in Q1 were primarily small mid-sized private capital deals.

Hong Kong’s commercial real estate investment activity moderated in Q1, with total volume falling by 10% YoY to $12.56b (US$1.6b).

According to JLL, investment volume declined because most transactions in the first quarter were primarily small and mid-sized private capital deals. 

Retail properties accounted for more than half (56.2%) of the total investment volume for Q1.

 “Investors have shifted their focus to retail properties as they expected the retail's rents and capital value will rebound following mainland China's reopening. Such boosted the sales of retail properties,” JLL said.

Hotel is another asset which JLL believes will benefit from the reopening of China and the recovery of tourism.

“As such, we expect the transactions of retail, hotel and industrial properties would be active in the second half of this year,” JLL said.