Capital Markets

  • The U.S.-China trade conflict and local social unrest continued to dampen real estate investment activity in Q3 2019. Investment turnover fell by 44% q-o-q to HK$12.4 billion, the lowest quarterly total recorded since Q2 2016.
  • Chinese buyers did not complete any acquisitions, marking the first time they have been absent from the market since Q4 2009. Domestic investors accounted for the bulk of purchasing activity.
  • Industrial property investment was relatively resilient but less than ten deals were completed, the lowest number since Q2 2016. However, transaction volume totalled HK$4.3 billion, an improvement of 14% q-o-q over the previous quarter.
  • Demand for and capital values of industrial premises will remain relatively resilient backed by positive carry and the reintroduction of the industrial building revitalisation scheme.