Hong Kong’s property investment growth steadies in H1

Investment activity picked up in Q2 after a slow Q1.

Real estate investment growth steadied in the first half of the year as investments picked up in the second quarter after the fifth wave of outbreaks slowed down growth in the first quarter.

As of mid-May 2022, the investment market recorded a total of 43 transactions, at an average deal size of HK$498m. This led to a total consideration of HK$21.4b.

“The average deal size has trended downwards due to the continuation of the pandemic, as investors buckled up and focused on investments with smaller capital lump sums,” Keith Chan, Director, and Head of Research, Hong Kong, Cushman & Wakefield said.

“We expect that the large transaction deal count will reach 50 deals in the first half of 2022, with total consideration forecast to hit HK$28b. With the pandemic being gradually contained, it is expected that the investment sentiment will improve in the second half of the year.”

Of all the property sectors, the industrial property sector saw the most investment activities in the first half of the year. 

Industrial buildings accounted for a 32% share of the total consideration, exceeding the historical 10-year average of 15%. Hotel assets followed after it accounted for 20% of the total consideration.