Industrial assets boost deals growth in Hong Kong: Colliers

There were 25 major deals with transaction volumes soared by 93%.

Transaction volumes for major deals went up 93% quarter-on-quarter to $34.2b in the third quarter of 2022, Colliers said in its recent study.

Colliers said there were high transaction volumes even as investors were cautious since their decisions were impacted by rising interest rates.

Apparently, industrial assets helped boost the growth of deals, which were over 25. The number of deals, however, decreased 19% QoQ and 51% year-on-year.

Since Hong Kong is set to ease quarantine and border rules, Colliers expect investor sentiment to improve in the next quarter.

“Once the border is reopened, we expect shops in the core district will be sought after by local investors while in-demand industrial assets will continue to attract institutional investors,” said Colliers’ researchers.

According to Colliers, interest rate hikes may also lead to higher cap rates for investors.