HK's institutional investors infuse US$1.2b into APAC real estate

Investments into Hong Kong, however, dropped.

Hong Kong ranks as the second-largest contributor of cross-border capital to the APAC real estate market, pouring US$1.2b into the region.

Hong Kong's institutional investors trail behind global investors who contributed over US$1.4b to the region.

In its Asia Pacific Capital Tracker Q1 2024, JLL reported that global investors seized opportunities in Japan and Singapore, whilst institutional investors from Hong Kong remained actively engaged in deploying capital within the Mainland.

“Foreign capital exhibited indifference towards Hong Kong, a trend possibly indicative of emerging repricing dynamics,” it noted.

Meanwhile, the overall commercial real estate investments in Hong Kong plummeted to US$.7b, a 54% year-on-year drop.

“The investment market was quiet bar a notable disposal of a neighbourhood shopping centre by a local developer,” the report noted.

Office property transactions were also sluggish as investors shifted focus to retail. Notable investments centred on strata sales.

Despite prevailing market challenges, logistics investment volumes in Hong Kong sustained modest levels amidst the backdrop of a high-interest-rate environment.

The Hong Kong market anticipates significant supply additions between 2024 and 2027, alongside a potential leakage of consumption to mainland China and neighbouring countries.