Mid-range industrial units worth $10m to $10m are likely casualties.
The strained economic relations between the world’s largest economies is expected to weigh on demand in Hong Kong’s heated commercial and industrial property market with the number of deals poised to fall by 12% to 4,680 in the second half of the year, reports South China Morning Post.
The number of transactions for industrial and commercial properties hit 5,290 in the first half of the year, real estate agency Ricaport Properties told SCMP with the $2.16b sale of Winner Godown Building marking a blockbuster transaction.
Deals which involve mid-range industrial building units worth between $10m and $100m could emerge hardest hit from weakened investor sentiment by H2 2018, Ricaport added.
“Some investors will adopt a wait-and-see attitude. But since most owners are still ambitious in asking prices, the number of transactions will be adversely affected,” said Stanley Chui, sales director at Ricacorp.
Also read: Trade war could cut 1% of Hong Kong GDP
Tech companies seeking industrial facilities emerged as the new growth driver of the industrial market in the first half of the year, according to real estate consultant CBRE, with data center operators, for instance, leased a combined 344,000 sqft in Shatin.
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