Hong Kong property investment to grow by 20 per cent next year, led by hotels, serviced apartments, says Cushman

Name: Man in China leaves hotel room full of of rubbish after month-long stay
Uploaded: 2021-12-15T03:00:22.000Z
Duration: 1 min 37 s
Description: Man in China leaves hotel room full of of rubbish after month-long stay

Multifamily conversions – hotels converted into long-stay flats for rental – are proving an attractive investment, says Tom Ko of Cushman & Wakefield

Industrial buildings and sites were among the most active sectors, last year and that is expected to continue

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In November, American developer Hines bought the 158-room Butterfly on Prat hotel in Tsim Sha Tsui for HK$930 million. Photo: SCMP Pictures

Xinlu Liang

Published: 11:00am, 15 Dec 2021

Hong Kong will see property investment grow by a fifth in 2022, with hotels and serviced apartments set to become investors’ main acquisition target, according to Cushman & Wakefield.

There will be 200 major transactions next year valued at around HK$100 billion (US$12.81 billion), the highest since 2018, according to the global property service firm’s “Hong Kong and Greater Bay Area (GBA) Property Market 2021 Review and 2022 Outlook.”

As the pandemic gradually eased and the economy regained some life this year, Hong Kong’s property market has shown signs of recovery.

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Man in China leaves hotel room full of of rubbish after month-long stay

“Investors worldwide have recently been drawn to emerging multifamily conversions such as serviced apartments and hotel properties,” said Tom Ko, executive director and head of capital markets at Cushman & Wakefield. “The aforementioned asset classes will likely benefit from the revival of tourism activities when the border gradually reopens.”

Multifamily conversions – hotels converted into long-stay flats for rental – are proving an attractive investment, said Ko.

In November, American developer Hines bought the 158-room Butterfly on Prat hotel in Tsim Sha Tsui for HK$930 million. Hines planned to convert the hotel into a co-living flagship to be managed by local residential operator Dash Living.

Major investment deals in 2021 were mainly driven by local investors and foreign funds. The number of transactions more than doubled from the previous year.

Industrial buildings and development sites were among the most active sectors, each accounting for about 30 per cent of the total volume, according to Cushman & Wakefield.