Hong Kong Has Become Asia's Largest Real Estate Investment Market, PwC Says
Xu Wei
DATE:  Nov 21 2017
/ SOURCE:  Yicai
Hong Kong Has Become Asia's Largest Real Estate Investment Market, PwC Says Hong Kong Has Become Asia's Largest Real Estate Investment Market, PwC Says

(Yicai Global) Nov. 21 -- Although Hong Kong properties are expensive and the market lacks liquidity, mainland Chinese investors pour money into the region and push up the price of real estate assets there, the 21st Century Business Herald quoted David Faulkner, executive director of Colliers International's Asia Valuation and Advisory Services Division, as saying yesterday at a presser.

This year's Hong Kong real estate investments totaled USD8.269 billion, marking a 5-percent annual increase and ranking fifth among the world's markets, per a report issued yesterday by the Urban Land Institute and PriceWaterhouse Coopers (PwC).

"A number of large transactions have made Hong Kong the biggest investment destination in Asia in the first half of 2017," said KK So, Asia Pacific Real Estate Tax Leader, PwC. "This has been complemented by a number of very large land purchase transactions in 2017, many involving Chinese developers looking to diversify away from low-margin deals in their domestic market. On the retail front, there now seems a market bottom in sight after several years of declines. In the commercial space, Hong Kong provides good scope for investors looking to find value-add investment opportunities given the rental differential between Grade-A and Grade-B buildings."

Mainland Chinese property investors withdrew from Hong Kong's residential land market after the property bubble burst in the late 20th century, and have made their return since 2011. They have become the most active force in Hong Kong's land auction market.

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Keywords:   Hong Kong,ASIA,REAL ESTATE