Hong Kong rate cuts to drive investor interest in 2025
Lower rates will attract institutional and property funds to value-driven opportunities.
Hong Kong’s recent interest rate cuts are set to boost investor sentiment and market activity in 2025, Colliers said.
In a report, the firm said the lower borrowing costs will attract institutional and property funds to value-driven opportunities like student accommodation.
Meanwhile, the office market is expected to recover as narrowing pricing gaps stimulate transactions, whilst the logistics sector draws foreign investors due to e-commerce growth and demand for high-quality facilities.
Government policies positioning Hong Kong as an international education hub are encouraging investments in student accommodation, enhancing its appeal in alternative real estate.
Investor optimism is rising, driven by market stabilization and improved cross-border investment flows, supporting greater transaction volumes.
ESG-compliant assets in Hong Kong are increasingly favored for their potential to deliver value premiums and higher occupancy rates in the coming years.