Real estate deals surge 367% to $1.8b in Q1 on office demand

There are also early signs of recovery in the retail sector, said MSCI.

Hong Kong’s real estate investments surged fourfold in Q1 2026 thanks to office sector demand.

Deal volumes rose 367% year-on-year (YoY) to US$1.8b during the quarter, data from MSCI’s Capital Trends report showed, driven by corporate and owner-occupier demand in the office speaker. This trend had been gaining traction since late 2025, MSCI said.

There are also early signs of recovery in the retail sector, where deal volume doubled from a very low base, it added.

“The transactions involving Hongkong Land’s core fund will undoubtedly steal the spotlight, but the market’s record quarter was a product of more than just a few large mega-deals,” said Benjamin Chow, head of private assets research for Asia at MSCI.

Notable transactions in Hong Kong include OCBC Bank’s purchase of China Huarong Tower for US$149m, and CityU’s acquisition of Festival Walk Tower for US$251m.

Hong Kong investors were behind two large retail deals in China: the Dalian Wanda and IKEA Livat portfolios.

“China and Hong Kong both posted growth as their prolonged declines in commercial real estate deal activity showed early signs of nearing a conclusion, whilst Australia and Japan saw deal volumes contract modestly amid rising interest rate pressures,” MSCI said in the report.