Hong Kong Office and Retail Investment

Housing Investment Consultancy
Office and Retail Investment

August 2017

The retail market continued to show signs of recovery with major transactions recorded in prime locations.

The sale of two commercial land plots in Central and Kowloon both grabbed plenty of attention with record breaking prices, but the two sub markets reacted very differently to the news.

Induced by the Murray Road site fetching a record AV of HK$50,064 psf, 10%-15% higher than market expectations, Central office landlords were quick to firm up asking prices by 20% or more.

The record consideration (HK$24.601 billion) for the sale of the Kai Tak commercial site did not result in similar price hikes in the Kowloon East office market as the upcoming supply bulge continued to weigh on sentiment.

The en-bloc office market was active with several major deals closed in Q2.

The retail market continued to show signs of recovery with major transactions recorded in prime locations.

While retail rents are likely to bottom out towards the end of this year, proactive investors may re-enter the retail investment market earlier.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square, 23/F

+852 2842 4573

 

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