realestate

Southeast Asian investors and local schools drive Hong Kong commercial property rebound

Colliers predicts 14% commercial real estate deal growth, driven by policy support and valuation appeal.

S
outheast Asian companies, including DBS Group Holdings and Jollibee, are injecting new life into Hong Kong's property market. Alongside education institutions, they accounted for around 22% of the HK$6.28 billion invested in properties during the first quarter, according to Colliers data. This surge has also boosted leasing momentum, with Southeast Asian investors more than quadrupling their investment from a year ago to HK$1.36 billion.

    The education sector made its mark with a significant HK$1.39 billion contribution, up from zero last year. Thomas Chak, head of capital markets and investment services at Colliers Hong Kong, attributes the rebound to supportive government policies and lower interest rates making property assets more appealing. He expects this trend to continue, predicting a 14.3% increase in full-year volume to HK$40 billion.

    Colliers recently facilitated the sale of Park Aura, a 25-storey commercial building in Tin Hau, for HK$650 million to Meitu co-founder Mike Cai Wengsheng.

Southeast Asian investors and local schools boost Hong Kong commercial property market.