Hong Kong property investment soars on lower funding costs, rising demand
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AdvertisementHong Kong propertyBusinessHong Kong property investment soars on lower funding costs, rising demandHong Kong’s commercial property market draws US$1.6 billion in the first quarter, driven by office, retail and hotel demand amid lower Hibor rates2-MIN READ2-MIN ListenCheryl ArcibalPublished: 7:30pm, 21 Apr 2026Updated: 8:18pm, 21 Apr 2026Hong Kong’s commercial property market attracted US$1.6 billion in investment in the first quarter, up 41 per cent from a year earlier, as demand for office, retail and hotel assets picked up amid improving liquidity, according to JLL.Investment volumes could receive a further boost from global investors looking to redeploy their capital amid the conflict between the US, Israel and Iran, the property consultancy said in a report on Tuesday.“With Asia increasingly perceived as a relatively stable and defensive investment destination, institutional investors from the Middle East may rebalance portfolios with greater capital allocation to the region,” JLL said. “Hong Kong stands to benefit as one of the key recipients of this capital inflow.”AdvertisementThe investments in the January to March period were spurred by “increased liquidity in the office sector, with asset prices in core locations approaching a near-term floor [and a] pickup in retail activity as Chinese end users made acquisitions,” JLL said.University of Hong Kong has acquired an under-construction office building in Connaught Road West, Sheung Wan, for HK$3.8 billion. Photo: Google MapsPeer CBRE, meanwhile, tracked HK$12.3 billion (US$1.57 billion) in investment in the segment in the same period, up 105 per cent from a year earlier, driven by demand from educational institutions and end users.AdvertisementAdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x