Hong Kong cap rates increase in Q3

The gross yield of commercial properties in Hong Kong ranges from 2.85%-4.60%.

Hong Kong cap rates rose in 3Q as asset values face increasing downward pressure, Collier’s Q3 2023 APAC Cap Rates Report showed.

“Vacancies remain high and rental prices experienced downward pressure across all sectors,” Colliers added.

As of 3Q23, interest rate and inflation rates in Hong Kong were at 5.40% and 1.80%, respectively.

According to the report, the gross yield of office properties can go as high as 3.90% and as low as 2.85%.

For retail properties, the lowest gross yield would be 2.85%, whilst the highest would be 4.60%. For industrial, the lowest gross yield would be 2.85%, whilst the highest would be 4.00%.