Long-term land investments gain ground amidst rising political action

Developers are looking to invest more in agricultural lands.

With investment volumes hampered in Q3 2019, property developers maintain a cautious sentiment, according to Colliers International.

While local developers remained active during the quarter, such as the sale of land in Kai Tak area to a consortium for US$1.62b, investors are now favouring long-term strategy as they take in the country’s political situation.

Agricultural lands are gaining further interest. CK Holdings is set to develop 1,500 residential units on a plot in Tai Po district.

Colliers forecasts that for the rest of 2019, investment sentiment will stay cautiously optimistic.

Opportunities should arise from owners with less holding power, and alternatively, investors are sighted to turn to districts with lower capital entry requirements to assure growth for recurring income and capital appreciation.