Hong Kong's property investment plummets by 52%

Average deal size is alarmingly shrinking.

The expectation gap between buyers and vendors in the commercial real estate investment market has been continuously widening, and this has led to fewer big fish transactions. 

According to research firm CBRE, total investment turnover has fallen by 52%, and is just 11% of the full year total for 2015, the lowest quarterly total
recorded since 2014. Transaction volume has remained at HK$32.7b.

Meanwhile, a total of 32 investment grade transactions were also recently registered, and the average deal size is shrinking alarmingly. “In the absence of
large deals, most transactions were for assets below the HK$1b mark. 22 of the 32 transactions completed this quarter were under HK$300m,” CBRE says.