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Top-end property transactions hit $120b for 1997

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Investors spent $120 billion on large-scale property transactions last year, doubling the amount spent in 1996, according to Jones Lang Wootton (JLW).

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The figure reflected a surge of activity in the first half of the year, which accounted for the bulk of the total.

Higher interest rates in the fourth quarter forced a steep decline in the number of transactions, and regional turbulence was expected to discourage investment this year, JLW's Pacific director Michael Chan Sing-fai said.

The survey covered deals worth $50 million or more.

Analysts attributed the hefty increase in large property transactions to rampant speculation, especially in office and retail properties.

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In addition, a rise in mainland companies coming to Hong Kong before and after the July handover lifted the transaction activity and value, they said.

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