Deal-making for commercial real estate down 50% in Q2 22
The market’s transaction volume reached $18b (US$2.3b).
Hong Kong deal activity for the commercial real estate market declined by 50% year-on-year to $18b (US$2.3b) in the second quarter of 2022, said global investment research firm, MSCI.
Its office sector was the hardest hit, reporting lowest volume and deal count for this quarter.
Meanwhile, cross-border investors accounted for all activity in the first half of 2022 even as strict border restrictions were in place.
“Much of their activity has focused on the industrial and hotel sectors this year, although the latter has primarily been driven by acquisitions with the intention of redevelopment,” read the statement.
Commenting on Hong Kong’s deal activity, David Green-Morgan, head of real assets research at MSCI, said the market’s office sector is still quiet whilst demand for the city's bigger towers also “dried up.”
$1 = US$0.13