Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Apr 26, 2024

Foreign investors most bearish on Hong Kong property market, survey shows

Foreign investors most bearish on Hong Kong property market, survey shows

Global investors are most bearish on Hong Kong’s property market in a JLL survey of major Asia-Pacific locations, as the city struggles to emerge from its deepest recession and long-running political crises.

Global investors are most pessimistic on the property market outlook in Hong Kong among major Asia-Pacific locations as the city struggles to emerge from its deepest recession on record and long-running political crises.

About one-fifth of investors said they planned to reduce some of their holdings in the city, according to a survey conducted by real estate consultancy JLL. Only 4 per cent of them wanted to raise their capital allocation, while the rest would maintain the status quo.

Hong Kong had the highest number of investors with selling tendencies. In comparison, only 1 to 8 per cent of investors were looking to reduce their investment in other markets, the survey showed. The proportion of foreign investors seeking to invest more in these other markets ranged from 15 to 56 per cent.

“A relatively weak income and capital value returns outlook over the next 12 to 24 months, coupled with a subdued domestic economy, are weighing on investor sentiment in Hong Kong,” said Nelson Wong, head of research for Greater China at JLL. The longer-term views for many of them, however, have stayed largely unchanged, he added.

JLL surveyed 38 global and regional managers overseeing US$1.8 trillion of assets in the second quarter, it said. It is not clear if the controversial national security law, which was first mooted in May and became effective on June 30, had an impact on the survey results.

The survey asked for any changes to their investment strategies in mainland China, Australia, India, Japan, South Korea, Singapore and other Southeast Asian countries, amid the Covid-19 pandemic.


In Hong Kong, prices of offices, flatted factories and retail premises fell by 10 to 15 per cent from their peaks in May 2019 to June this year, according to government reports. The slide prompted the Hong Kong Monetary Authority (HKMA) to roll back its market-cooling measures last month
for the first time since 2009.

While Covid-19 has hurt economies across the board, Hong Kong has had to contend with the fallout from the national security law. The legislation has stoked geopolitical tensions between China and many western governments, triggering sanctions and export bans.

These issues are likely to put further pressure on Hong Kong’s real estate market
as business confidence weakens, the HKMA said in its August 19 statement.

The capital values of high-street shops will drop by 35 to 40 per cent this year, while those of grade A offices will fall by 20 to 25 per cent, according to JLL forecasts. Prime warehouses will suffer a 5 to 10 per cent loss, it said.

“Our interactions with clients reinforce the view that investors will continue to seek defensive locations and sectors where the rental collection experience has been positive,” said Stuart Crow, head of capital markets for Asia-Pacific at JLL. “Japan and Korea remain high on the preferences for clients, as do sectors such as multifamily, non-discretionary retail and logistics.”

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×