Real estate investment in HK to reach HK$70b in 2022: report

This is an improvement compared to its 2019 and 2020 levels.

Real estate investment in Hong Kong is poised to reach up to HK$70b in 2022, surpassing its 2019 and 2020 levels, Cushman & Wakefield reported. 

This will likely be driven by industrial properties, hotels, and development sites as these remain attractive to investors. 

“Industrial assets will be a priority for investors, as their flexibility for conversion to warehouses and data centers remains popular to meet new economy demands,” Tom Ko said. 

“Development sites will be further accelerated due to future infrastructure provisions such as rail extensions, which will subsequently drive capital appreciation and population growth.”

Ko added Cushman & Wakefield expects foreign funds to remain active, which will strengthen local operators for further joint ventures amongst others. 

In the first half of the year, local investors accounted for more than 56% of the total transactions. Local investors dominated the market due to border restrictions that limited foreign funding. 

“Nevertheless, several prominent investment funds took advantage of the quiet market and looked to bargain-hunt,” Ko said. 

“During this period, funds accounted for 42% of total transactions, a significant increment of 14% compared with 1H 2021.” 

Most industrial and hotel deals were purchased by foreign funds forming JVs with local operators.