Hong Kong’s commercial property investment growth beats peer Asia-Pacific markets

Hong Kong’s commercial property investment more than doubled to US$3.1 billion in the second quarter, making it the fastest growing investment market in Asia-Pacific thanks to a strong increase in retail and office deals and a low base effect, according to JLL.The 129 per cent growth from a year earlier beat other top-performing markets including Singapore with 108 per cent growth and Australia with an 82 per cent increase, data tracked by the property consultancy showed.“Hong Kong’s robust performance comes as investors selectively target assets offering immediate yield stabilisation,” JLL said in a report.This rebound in the second quarter helped drive 90 per cent growth in Hong Kong’s commercial property investment in the first half, it added.“Hong Kong’s commercial real estate investment market remains highly active,” said Oscar Chan, head of capital markets at JLL in Hong Kong. “Despite ongoing macroeconomic uncertainties and a complex interest rate environment, we are seeing continuous investment activity flowing into the city.”Office deals were notably driven by assets under receivership, JLL said.One such deal was the reported HK$611.4-million (US$77.9 million) acquisition of 299 Queen’s Road Central. Meanwhile, 184,041 sq ft One Bedford Place, a distressed office tower in Tai Kok Tsui, was purchased by Singapore-based investor Wee Hur Holdings for HK$748.8 million in June, according to data compiled by Colliers.