Mainland Chinese investment in Hong Kong office buildings hits new high in first half
Interest is also extending to retail space and industrial buildings, analysts say
Mainland Chinese investment in commercial property in Hong Kong rose to a new high in the first half of this year, propelled by several high-profile purchases of office towers.
A total of 15 sales of commercial properties worth a total of HK$31 billion (US$3.9 billion) were completed by mainland investors in the first half, making up 35 per cent of the total commercial property sales of HK$89 billion, according to figures from CBRE.
The figure is higher than the 20 per cent contribution from mainland investors in 2017 and five times that of 2014.
“Mainland investors have a strong interest in Hong Kong’s office towers. They love those with ocean views,” said Tony Ng, senior director for capital markets at CBRE in Hong Kong. “Office towers in major cities like Beijing and Guangzhou cannot enjoy that.”
“We will see more mainland Chinese landlords as their interest has also extended to shops, retail podiums and industrial buildings,” he said.
Of the 15 deals, nine were for office buildings, which are seeing their values increase because of low vacancy rates and high rents.