Hong Kong would surpass New York as top destination for mainland real estate money, Colliers says

Hong Kong is likely to surpass New York City as the top destination for mainland real estate investments this year, backed by a record-high level of transactions in the first quarter, says Colliers International.

Total transactions of mainland investments in Hong Kong real estate in the first three months of 2017 surged 213 per cent to HK$36.1 billion, compared with the year-earlier period, the real estate service company said.

It attributed a number of factors to have contributed to the uptrend including the depreciation of renminbi and slower economic growth in China, which compelled investors to seek better capital value offshore.

Last year, China’s real estate investments in Hong Kong totaled more than HK$41.2 billion dollars, trailing behind New York City’s recorded HK$44.4 billion, according to Real Capital Analytics data that was cited by Colliers.

“Hong Kong could outstrip New York City as the most popular recipient for PRC real estate investments in 2017,” said Antonio Wu, deputy managing director of capital markets and investment services at Colliers International.

Wu added that the Trump administration would be extra cautious in approving foreign investments into the US, which will benefit Hong Kong.