protests push commercial property market off a cliff



Posted by Ed 45 days ago
Hong Kong protests are pushing the city’s commercial property market off a cliff, and sellers are in denial

A report from property adviser CBRE this month noted that transaction volumes plunged 44 per cent quarter on quarter in the third quarter, to just US$1.6 billion, the lowest quarterly total since the second quarter of 2016, when sentiment was hit by fears about China’s economy and policy regime.

Only 30 deals were completed last quarter, the second-lowest number since the global financial crisis.

Hong Kong’s office market, which has accounted for the lion’s share of transactions, was hit particularly hard, with only US$331 million invested in the sector, the lowest quarterly figure since the first quarter of 2014.

In a report published earlier this month, Savills, a real estate adviser, described the market as being in “a state of suspended animation”.
The predicament is made more acute by the predictable surge in Hong Kong outbound investment. The city’s property investors are parking their money in more stable sanctuaries overseas.

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