Chinese investors pull back from Hong Kong as capital controls tighten
July 10, 2017 Category Real estate, Weekly
Stricter capital controls introduced by Beijing last November have cut investment demand by mainland Chinese investors in Hong Kong by four times, according to real estate management company Jones Lang LaSalle. Mainland investors accounted for only 7.6% of the total investment volume in Hong Kong’s office sector in the first half of the year, compared to 31% in 2016, said Denis Ma, head of research at JLL. The total number of commercial property transactions valued at over HKD100 million surged by 51% year-on-year in the first half, but the total investment volume was down 12.7% year-on-year. The office sector continued to attract the most investment, accounting for 53% of the total commercial investment volume, while retail and industrial accounted for 25% and 22%, respectively. The office sector recorded the strongest performance within the commercial and retail sector. Prices for Grade A offices grew 15.1% in the first half, according to JLL. The office market in Central saw capital values surge after the sale of the Murray Road car park site for a record average value of HKD50,056 per square feet. Capital values of high street shops, however, continued to fall, down 7% in the first half. JLL said that the current spread between interest rates and property yields provides a buffer against rising interest rates. “All in all, we expect capital values of Grade A offices and warehouses to go up in the range of 15% to 20% and 5% to 10% respectively in 2017, while those of high street shops to correct 5% to 10%,” Ma added.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world