Property investments down 32% to $3.67b in Q3

This is the fifth-straight quarter of decline.

Property owners waiting for the protests to abate will find their financial patience and muscle tested in the coming months as price fall and investments dwindle, with property investments in the city recording its fifth-straight quarter of decline, a capital markets firm reported.

Property investment volumes declined 32% YoY to $3.67b (US$2.7b) in Q3, driven by ongoing protests and a “particularly strong” Q3 2018, according to a report by Real Capital Analytics.

“Hong Kong transaction volumes dwindled significantly during Q3, largely due to reduced activity by domestic investors after the political protests erupted in June. The demonstrations only exacerbated a softening trend though following an exceptionally strong 2018,” noted David Green-Morgan, RCA’s managing director for Asia Pacific.

The sale of the Kimberley hotel at a significant discount to its reported asking price suggests the coming months will be a stern test though of real estate owners’ financial muscle and patience, particularly in Hong Kong Central, noted Green-Morgan.

For the first nine months of 2019, investment volumes plummeted 41% YTD to $18.95b (US13.93b).

Despite the weaker performance, Hong Kong still remains amongst the top five most active markets in terms of sales volume, only edged by Seoul as Asia Pacific’s biggest market at a city level in the third quarter, and by Tokyo over the first nine months of the year.