Commercial real estate investment weakened further in Q2 2019. Transaction volume totalled HK$21.1 billion, a decline of 6.2% q-o-q and the second lowest quarterly total recorded since Q2 2016. Activity continued to be driven by the office sector, which accounted for 53% of total transaction volume.
Strong demand for neighbourhood malls helped total retail property investment volume rebound to HK$6.1 billion, an increase of 46% q-o-q.
Despite the recent reintroduction of the building revitalisation scheme, activity in the industrial sector remained subdued. Transaction volume totalled HK$3.2 billion, just 51% of the quarterly average since Q4 2017.