In 2021, commercial property investment in Hong Kong will increase by 23%.

In the second quarter, retail and industrial assets remain a top investment priority.

According to JLL, total investment volumes in Hong Kong for commercial buildings worth more than HKD 20 million grew 22.6 percent year on year to HKD 12.5 billion in the first quarter of this year as the Covid-19 pandemic subsided. It demonstrates an improvement in market sentiment in the first quarter compared to the previous year. qatar sale

In the first quarter, sales of retail assets were the most active among commercial properties. Retail properties accounted for over 57 percent of the entire investment volume in commercial properties worth HKD 100 million or more.

When commercial properties worth HKD 20 million or more were included, the proportion of retail purchases grew to around 61.2 percent. The overall investment volume in retail properties valued at HKD 100 million or more increased by 15.4% year on year. The increase is much more noticeable when sales of retail properties worth HKD 20 million or more are included, which increased by 33.7 percent year on year.

Another market focus in the first quarter was industrial property. Goodman Asia purchased two properties from Samson Paper Company Limited for nearly HKD 750 million, bringing more outside institutional investors into the industrial sector. Smile Centre in Fanling was also purchased by Silkroad Property Partners for HKD 321 million.

Office transaction volume decreased by 89.1% quarter-on-quarter in terms of deals for HKD 100 million or more in the office investment market. The decline was mostly caused by the failure to complete major transactions.

JLL's Head of Capital Markets in Hong Kong, Oscar Chan, stated, "The last quarter's investment market was led by retail property sales, particularly retail properties in non-shopping districts. Retail rentals have fallen 72 percent from their market peak to the rental level in the fourth quarter of 2003, and are projected to stabilize. They feel now is a good time to buy retail properties because asking prices have lowered and retail rents are likely to rise."

"As the outbreak subsides, we are seeing foreign investment dollars return to Hong Kong's property market, with several industrial assets being purchased. In the second quarter, we predict additional large-scale transactions as the city returns to normalcy and the continuing immunization program continues. Investors are likely to stay focused on retail and industrial assets "Added he.

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