Hong Kong Office and Retail Investment

Housing Investment Consultancy
Office and Retail Investment

August 2018

Grade A office prices have continued to break records with the gradual acceptance of HK$50,000+ per sq ft prices by the market, while investors are pursing suburban retail in areas with comprehensive infrastructure programmes in place.

The sale of Cityplaza 3 and 4 in Quarry Bay as well as Octa Tower in Kowloon East reflect persistent interest in decentralized office areas from mature Mainland investors eyeing district transformation prospects.

Tsim Sha Tsui is attracting returning investors with the imminent opening of the high-speed rail link in West Kowloon and a narrowing of the price gap with Kowloon East.

Record-breaking deals were abundant in the Grade A office market with prices of HK$50,000+ per sq ft becoming the new norm.

More investment interest was focused on prime street shops as rents begin to rebound.

Suburban areas with comprehensive infrastructure programmes promising enhanced future connectivity, such as Tuen Mun, are attracting retail investment interest.

Looking ahead, the widening price gap between Grade A and B offices may prompt a shift in attention to the Grade B market; while core retail prices look like they may finally be about to rebound.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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