In January, investment in Hong Kong's commercial property market reached new highs.

Hong Kong's property investment market continues to record new highs in January 2018, according to JLL's monthly Property Market Monitor, owing to robust worldwide investor demand.

In January, a total of four en-bloc office buildings were sold for HKD 14.8 billion, a 17 percent increase over the previous year. qatar properties for sale

The most attention was drawn to the en-bloc sale of 18 King Wah Road, a new Grade A office property that set a new record for the largest office transaction in Hong Kong East.

Decentralization remained a popular issue among office renters in the leasing market. Tenant decentralization and consolidation requirements fueled demand in Hong Kong East and Kowloon East, where leasing activity was concentrated. In January, the whole market had a net take-up of 209,900 square feet. As some tenants sought space to expand, net absorption in Central surpassed 33,000 square feet.

"The rising difference between rents in Central and emerging core business districts will lend momentum to decentralization," says Alex Barnes, Head of Markets at JLL. We predict Hong Kong's Grade A office market rentals to continue to trend higher in 2018, with up to 5% growth supported by Mainland Chinese enterprises' outbound growth. As demand competes for the few available spaces, Central will continue to exceed the market."

On the back of a constrained vacancy situation, office rents in Central increased by 0.7 percent month over month in January. Rents in Hong Kong East increased by 0.8 percent on a month-over-month basis, owing to rising demand at the upper end of the market.

"The robust pricing obtained in the government sale of the Murray Road Car Park in May last year is now starting to seep across the broader office market as investors reset benchmarks," said Denis Ma, Head of Research at JLL. Furthermore, the market's record high prices are no longer reliant only on PRC buyers, as local money is already coming into the market. Even with borrowing rates poised to climb further, we predict capital values to rise another 5-10 percent in 2018 because to a tight occupier market."

The city's residential market remained buoyant, buoyed by a record-breaking land sale for government sites in Kowloon and significant advances in the local stock market. Following a 1.3 percent gain the previous month, capital values of mass residential properties increased by 0.9 percent month over month in January.

 

In 2017, Hong Kong home prices increased at their fastest rate in five years.

According to JLL's latest Hong Kong Property Market Monitor, the property market in Hong Kong reached record highs in December, finishing off a year in which capital values increased at their quickest rate in five years. The value of mass residential properties climbed by 1.3 percent month over month in December, bringing the year-over-year growth to 15.8%.

"Despite being at record high levels, we expect house prices to continue to go higher as we enter the New Year," said Denis Ma, JLL's Head of Research. Market sentiment is still positive, as indicated by good sales in the government land and primary sales markets, and will be boosted even more by the recent stock market boom. Housing prices are expected to rise another 10% in 2018, with the potential for a 20% increase if the current market trend continues.