HK is seventh most active real estate market in APAC

However, the office rental growth index has been in decline since 2023.

Hong Kong ranked as the seventh most active real estate market in the Asia Pacific region with a $14.7b (US$1.9b) valuation during the third quarter of the year, according to a PWC report.

However, its office segment has endured a long list of headwinds including the region’s highest interest rates, lowest cap rates, weak occupier demand, and an enormous pipeline of new supply.

One locally based fund manager said that asset values have corrected very significantly across all the major food groups, with offices down 40% to 50% in some cases.

Moreover, the office rental growth index has been on a decline since 2023 and development prospects for the next year scored low at 3.98

As for prime retail, rents in Hong Kong are now anywhere between 50% and 90% below previous peaks.

($1=US$0.13)