HK's commercial real estate sales climb 15% YoY to US$2.6b in Q1

The city is amongst the only two major markets to post an increase in investment volume.

Hong Kong’s commercial real estate sales grew 15% to US$2.6b (HK$20.4b) in Q1 2023, making the city one of two major global markets which saw an increase increased deal volumes during the quarter

MSCI Real Assets, in its Asia Pacific Capital Trends report, said Mapletree and PAG’s acquisition of the Goldin Financial Global Centre boosted the city’s sales volume.

“The US$830m (HK$6.50b) acquisition of the distressed property was the largest single asset deal across the region in Q1 2023,” the report said.

"“There was some positivity for the Hong Kong market but it may still be too early to celebrate at this point. Transaction activity was coming off a particularly low base in 2022, while the negative spread between commercial yields and borrowing costs will be exacerbated by the most recent interest rate hike. Still, China’s reopening has had a positive impact on the hospitality sectors, with both retail and hotel assets posting strong growth in investment compared with the previous quarter," David Green-Morgan, MSCI Global Head of Real Assets Research, said.