Real estate investment volumes hold firm in Q3 with office gains

The retail sector saw $2.6b (US$330m) in transactions during the quarter, bringing the year-to-date total to $6.1b (US$780m).

Hong Kong real estate investment volumes held steady in Q3, underpinned by office and retail transactions, despite a modest year-on-year decline.

According to JLL, the city recorded approximately $9.3b (US$1.2b) in investment during the third quarter of 2025, down 10% year-on-year and slightly lower than Q2 levels. Still, the figure remained broadly in line with quarterly averages seen through 2024.

For the first nine months of 2025, total investment reached $28.7b (US$3.7b), representing an 18% increase YoY. JLL noted that Hong Kong’s performance reflects ongoing resilience in selected sectors, even amid broader market caution.

Office assets led transaction volumes, with around $3.6b (US$460m) recorded in Q3 and $14b (US$1.8b) year-to-date. Much of the activity was driven by owner-occupier strata sales, as local businesses continued to seek long-term operational certainty through asset ownership.

The retail sector saw $2.6b (US$330m) in transactions during the quarter, bringing the year-to-date total to $6.1b (US$780m). According to JLL, higher yields and more stable retail sales have begun to restore investor confidence in the segment.

Industrial and logistics properties accounted for $1.8b (US$230m) in Q3, and $4.1b (US$530m) year-to-date. The largest transaction of the quarter was Uni-China’s $738m (US$95m) purchase of 4–6 Tsing Tim Street, a self-use deal that reflects continued demand from end-users in the logistics sector.

JLL added that whilst broader transaction volumes remain measured, the market is benefitting from evolving user demand, selective investor re-entry, and a stable pipeline of strata office and industrial assets, particularly in decentralised areas.