Hong Kong Figures - Investment Q4 2023

January 17, 2024 5 Minute Read

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  • Commercial real estate investment volume (deals worth over HK$77 million, excluding related transactions) jumped by 73% q-o-q to HK$13.9 billion in Q4 2023. However, this marked the fourth consecutive quarter in which investment volume failed to breach HK$20 billion. Full year investment volume reached HK$40.4 billion, the lowest since 2008.
  • With only 24 deals concluded, transaction volume was mainly backed a handful of sizable office transactions for self-use. These included the Securities and Futures Commission buying 12 floors on One Island East for HK$5.4 billion and Li Ning spending HK$2.2 billion on Harbour East. These two deals contributed 55% of quarterly investment volume. 
  • While industrial property investment rebounded 2.6x q-o-q to HK$2.0 billion, this marked the fourth lowest total since Q1 2021. Major deals all involved strategic acquisitions, with China Resources buying Kerry Warehouse (Fanling 1) in Fanling for HK$1 billion, its eighth industrial purchase since the onset of the COVID-19 pandemic.
  • Although some experienced investors continued to sell off assets to replenish capital, other cash-rich investors were actively seeking opportunities. Local investors spent a total of HK$1.8 billion this quarter.