Investment volume rises 3% in Q4 2024 amidst rate cuts and LTV changes

Meanwhile, the capital value of office and industrial assets reported YoY declines.

Investment volume rose 3.0% quarter-on-quarter (QoQ) to $10.1b in Q4 2024, Colliers reported.

This increase was due to the interest rate cut in September 2024 and the relaxation of the loan-to-value (LTV) ratio in October 2024.

Meanwhile, assets under receivership or being sold at a loss accounted for 46% of high-value transactions in Q4 2024.

In the same period, the capital value of office and industrial assets declined by 17% year-on-year (YoY) and 8% YoY, respectively.

“We anticipate a further 5% to 10% YoY decline for the office sector in 2025. Local end-users have been active in the market, targeting commercial spaces for educational use, highlighting growing demand from the education sector,” Thomas Chak, head of Capital Markets and Investment Services at Colliers Hong Kong said.

“With rising demand for off-campus learning centres and student accommodation, investors are increasingly capitalising on opportunities to reposition or acquire commercial properties for educational purposes, leveraging longer lease terms for enhanced cash flow,” Chak added.