Hong Kong commercial property deals fall by a third as worsening political crisis saps appetite, says Real Capital Analytics
- Transactions in the sector came to US$2.7 billion in the third quarter, according to RCA, down 32 per cent from the same period a year ago
- Hong Kong fell from second to fifth place in RCA’s global ranking of commercial real estate transactions, just ahead of Singapore
Commercial property deals in Hong Kong fell by a third in the period from July to September, dragging the city down to fifth place from second in a global league table compiled by Real Capital Analytics.
Hong Kong’s plunge in the rankings reflects how investors’ appetite for assets in the world’s most expensive property market has dried up as the city grapples with the worst political crisis in its history.
Transactions in the commercial property sector came to US$2.7 billion in the third quarter, according to RCA, down by 32 per cent from the same period a year ago. Particularly hard hit were deals worth above US$100 million, said RCA, which tracks property deals worth at least US$10 million.
It was the fifth straight quarter in which activity has contracted on an annual basis. Australia topped RCA’s rankings with US$6 billion of deals, ahead of China in second place on US$5.7 billion and Japan on US$5.3 billion.
Hong Kong found itself a whisker ahead of Singapore, widely considered its main rival in attracting cross-border investment, which saw a 62 per cent surge in deal value to US$2.6 billion in the third quarter.
In the first nine months of the year, the Lion City’s commercial property transactions rose 69 per cent to US$7.5 billion, while Hong Kong’s tanked by 41 per cent from a year earlier to US$13.9 billion.
“Hong Kong transaction volumes dwindled significantly during the third quarter, largely due to reduced activity by domestic investors after the political protests erupted in June,” said David Green-Morgan, RCA’s managing director for Asia-Pacific.
