Midland’s Daniel Wong says mainland demand will support Hong Kong’s office market
Hong Kong saw HK$16.3 billion ($2.1 billion) worth of commercial property transactions in January, surging 170 percent year-on-year and representing the second-highest monthly total in nearly five years, according to commercial property agency Midland IC&I.
The figure falls short of the HK$31.5 billion ($4.2 billion) of transactions recorded in December 2017 — the highest amount since March 2013. The January total includes 802 transactions of retail, office and industrial properties, a deal count that increased 15 percent year-on-year, the realtor’s data shows.
Industrial Sales Hits All-Time High
Industrial buildings posted a transaction volume of HK$7.9 billion ($1 billion) in January, the highest monthly total on record. Wing Tai Properties’ HK$2.2 billion ($276 million) sale of the Winner Godown Building in Tsuen Wan contributed the lion’s share of the total.
According to the Midland data, HK$5.3 billion ($678 million) of office properties changed hands in January, far higher than last year’s average monthly transaction volume of HK$3.1 billion ($396 million). The agency predicts a robust market ahead, based on current office transaction activity.
Winner Godown Building contributed almost 30 percent of January’s industrial space transaction
Sales of retail space last month totalled HK$3.05 billion ($396 million). This exceeds the average monthly figure for the first 11 months of 2017, which was HK$2.3 billion ($294 million) excluding Link REIT’s HK$23 billion ($2.9 billion) mega-sale of 17 malls in December. The retail property market is supported by improving retail figures and rising visitors to Hong Kong, Midland said.
Daniel Wong, CEO of Midland IC&I, said in a statement that the market expects the city’s industrial revitalisation programme will benefit owners, which is spurring investors to scoop up workshops and warehouses. Wong added that mainland-based firms will continue to support strong demand for office space in Hong Kong.
Wong anticipates there will be a slackening of transaction activity in February as the Chinese New Year holiday approaches.
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