Hong Kong Office and Retail Investment

Housing Investment Consultancy
Office and Retail Investment

May 2017

The retail market appears to have found a level, but we will have to wait until next year before existing vacancy is fully absorbed and prices recover.

The office market saw a dramatic pick up in pace during the first quarter, mostly in Central and Wanchai due to the recent Murray Road Carpark tender.

Possible purchasers of this rare opportunity to enter the Central office market include the usual suspects; local and mainland developers. Despite the recent domination of the land market by mainland firms, however, this time local developers will also be aggressive bidders.

Supply of sales stock remains tight on Hong Kong Island while in areas like Kowloon East the market is hardly moving.

The retail market is currently finding a level as retail sales and rents appear to have hit bottom.

When the retail market does turn up next year, we believe it will do so gradually in contrast to recent years of heady year-on-year growth.

Market sentiment will be given a further boost by the government sale of the 204,988 sq ft Kai Tak Area 1K Site 2 on May 26th.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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