Hong Kong retail real estate sales looking good
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Hong Kong retail real estate sales are showing signs of growth, more transactions in January and December than any other month last year.
According to a research report from Midland IC&I, which sourced data from the land registrar, sales of retail space last month totalled HK$3.05 billion (US$396 million). This exceeds the average monthly figure for the first 11 months of 2017, which was HK$2.3 billion. It excludes Link REIT’s HK$23 billion mega-sale of 17 malls in December.
There were 145 recorded retail shop sales in January.
Huang Han-cheng, CEO of APH shops, described the market as “still hot” adding the market was benefitting from a return of investors and tax policies.
Midland said the retail real estate market has been supported by improving retail figures which in turn were aided by rising visitors to Hong Kong.
The overall Hong Kong property market achieved $16.3 billion (US$2.1 billion) worth of commercial transactions in January, surging 170 per cent year-on-year and representing the second-highest monthly total in nearly five years.
Questions & Answers
Q.How did January's retail property sales compare to the monthly average last year?
How did January's retail property sales compare to the monthly average last year?
Sales of retail space last month totalled HK$3.05 billion. This figure exceeds the average monthly sales of HK$2.3 billion for the first eleven months of 2017, excluding Link REIT's December mega-sale.
Q.What factors are contributing to the current strength of the retail real estate market?
What factors are contributing to the current strength of the retail real estate market?
The market is benefiting from a return of investors and supportive tax policies. Improving retail figures, aided by an increase in visitors to Hong Kong, are also supporting the market.
Q.What was the total value of all commercial property transactions in Hong Kong last month?
What was the total value of all commercial property transactions in Hong Kong last month?
The overall Hong Kong property market achieved commercial transactions worth HK$16.3 billion in January. This represents a significant 170 per cent increase year-on-year and is the second-highest monthly total in nearly five years.
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