CBRE today launches the Hong Kong Investment Q4 2014 MarketView. For more information or to arrange interview with one of our experts please contact [email protected] / 2820 8108.
Mr. Kam-hung Yu, Senior Managing Director, Investment Properties, CBRE Hong Kong, is positive about the investment market, “Broad vacancy levels across all sectors will remain low, which will provide solid support for occupancy and capital values. Amongst the commercial property sector, prime office and industrial are expected to remain the two most popular asset classes for investors. The chance of seeing further yield compression in 2015 is low due to higher interest rates and political risk factors as well as low economic and rental growth outlook.”
Outlook for Q1 2015
The extra spin for financial sector firms after the recent launch of the Shanghai-Hong Kong Stock Connect scheme will ensure stable occupancy and hence rental growth for offices in Hong Kong. The growing Chinese footprint is also supporting a stronger purchase demand for self-use offices
Low space availability and sustained occupier demand will guarantee stable income streams and hence good justifications for investment
The GDP forecast for Hong Kong is less positive now compared with a few months ago. This, coupled with uncertainties over the city’s long-term constitutional development, although unlikely to pose much impact on property demand to date, will potentially become a concern for institutional investors
Highlights for Q4 2014
Investor concerns over the impact of ‘Occupy Central’ on Hong Kong were short-lived. A few eye-catching deals were concluded in the latter half of October
Investment transactions slowed with total turnover amounting to HK$16b in Q4, bringing full year lump sum to HK$73b, down 10% compared to 2013
Fewer office and retail premises were transacted during the quarter but industrial has become a popular asset class, particularly for schemes with revitalization potential
To view full Hong Kong Investment MarketView Q4 2014, click here.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.