Deterioration observed in Hong Kong property market

Japan, however, outperforming Asian competitors.

The Q3 RICS Global Commercial Property Survey shows that Hong Kong’s commercial property market showed signs of deterioration.

The RICS Occupier Sentiment Index edged into negative territory, mainly driven by a sizeable decrease in occupier demand. Availability also edged upwards despite rising availability and declining tenant demand.

Rental values are expected to remain positive but the net balance moderates notably. On the investor side, the RICS Investment Sentiment Index moved back into negative territory with weakness spread across retail, industrial, and office sectors.

Capital values are expected to decrease in Q4 according to survey respondents. Survey results suggest there may be a pickup in foreclosed sales in the coming quarter, which may put further pressure on capital values.

The RICS Global Commercial Property Survey is a quarterly guide to developing trends in the commercial property investment and occupier market.