realestate

China and Hong Kong's Real Estate Vulnerabilities Revealed

Mainland China and Hong Kong real estate markets offer underappreciated long-term growth potential despite current investment lags.

A
sia's commercial property investment markets are gaining momentum after a slowdown caused by global monetary tightening. Transaction volumes have rebounded significantly this year, increasing 28% annually from January to September, with JLL reporting $38.8 billion in deals last quarter - the highest level since interest rates rose in early 2022. Cross-border capital inflows are also on the rise, driven by both Asian and global investors pouring more money into various markets and sectors, including offices and retail properties.

    In India, private equity investment in real estate reached $2.9 billion in the first half of this year, with overseas investors dominating activity. However, domestic investors now account for over 20% of deals, a sign of the industry's growing maturity. In South Korea, Seoul's office market has bucked pandemic-induced trends, attracting a record $7.8 billion in investment from January to September - the highest amount among global office markets.

China and Hong Kong real estate market vulnerabilities exposed in financial report.