Photo by Joe Cooke on Unsplash

Relaxation of measures unable to lift real estate investment sales: Savills

In Q4, commercial investment volumes contracted by 44.3% YoY.

Hong Kong’s more relaxed COVID restrictions were unable to lift the city’s real estate investment sales, data from Savills showed.

According to Savills, the relaxations did not offset the “headwinds from a global economic slowdown and rising interest rates.” 

In Q4, commercial investment volumes across the retail, industrial, office and hotel sectors, excluding land sales and deals worth over US$10m,  contracted by 2.5% QoQ and by 44.3% YoY in Q422.

Savills, however, believes that the border reopening will have a good impact on investment sales moving forward, adding that it will trigger some “office leasing demand from wealth management firms and insurance companies to return in early 2023.”

But given the persistent rental declines of -1.5% to -3.5% across all districts in Q422, higher levels of vacancy of 10.4% in Q422, as well as abundant new office supply in
in 2023 and 2024, Savills said Grade A office rents will likely fall by 10% in 2023.

On retail, Savills said it does not expect to see any significant changes in the first half of 2023 since it will take time before travellers return to Hong Kong in numbers.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

HK scraps MPF Offsetting Scheme to enhance employee protection
Starting 2025, employers are no longer allowed to offset long service and severance payments from its Mandatory Provident Fund contributions.