The office sector remains in hot demand with capital values rising 17.5%.
Hong Kong’s property market was able to sustain its red-hot momentum to cap the year on the back of skyrocketing capital values as real estate transaction volumes ballooned by 171% YoY to a whopping $57.91b (US$7.4b) in Q4, according to a JLL report.
The steep figures for 2017 do not even include the record-high $40.7b (US$5.2b) sale of billionaire Li Ka-shing’s The Centre which would make it the most expensive office building in Hong Kong and biggest property transaction in recent memory, as it will close in early 2018.
The office sector remains the best-performing real estate market after capital values surged by a further 17.5% in 2017 as Mainland companies scramble to acquire the best office space in the city’s business district.
“Whilst the limited supply of Grade A office assets available for sale may hinder investment activity in 2018, we believe that there is still sufficient demand for capital values to rise a further 10 per cent,” said JLL Hong Kong managing director Joseph Tsang.
Retail also fared better this year on the back of a mild tourism revival after accounting for a quarter of transaction volumes in Q4.
Do you know more about this story? Contact us anonymously through this link.