Hong Kong Commercial Property Deals Up 35% In January
HONG KONG – Data from Centaline showed that the volume of commercial property transactions in the Chinese territory jumped by 35 percent to HK$4.08 billion in January 2023 compared to the preceding month, reported The Standard on Monday morning (6 February, SGT).
This was even though the number of commercial property deals in the city dipped by 6 percent month-on-month to 215, primarily because of the Chinese New Year holidays last month.
This comes as market sentiment in the commercial real estate (CRE) sector improved after today’s opening of the border between mainland China and Hong Kong, said the property agency.
Moreover, Centaline believes that Hong Kong’s commercial property market would rebound further after the authorities removed the quotas and COVID testing to be allowed to cross between the two areas starting on Monday.
The property agency said turnover from the city’s commercial assets increased significantly by 62 percent to HK$901 million in January versus the prior month, while the number of deals surged by 66 percent to 40. However, both figures were still lower than the levels seen in the same period in 2021.
Nonetheless, Centaline thinks that the capital values of commercial properties in Hong Kong are on an uptrend thanks to a beehive of business activities after the border reopening.
For instance, NCB Innovation Centre, a new building in Cheung Sha Wan, recently managed to offload 7 carpark lots for more than HK$125 million, while 3 units on level 22 were snapped up by a Singapore-based company for about HK$63.25 million.