Research & Forecast Report

Annual

Hong Kong Investor Survey

Report 2019

Annual

Hong Kong Investor Survey

Report 2019

In our Annual Hong Kong Investor Survey Report 2019, we surveyed Hong Kong based institutional investors, private equity funds, family offices, and developers, to gain new insights into current trends and get a better understanding of how current challenges are impacting the city’s investment markets.
The survey was conducted during 15 October 2019 and 10 November 2019, which captured the investment market sentiment following the break out of the local demonstrations in June 2019. It also highlights investors’ portfolio changes and key strategies for 2020.

Overview

 

After years of strong rental and capital value growth, Hong Kong’s property market is entering a consolidation phase following an economic slowdown and political instability. While investors’ appetite remains positive towards purchasing real estate in 2020, they are also exhibiting caution and maintaining a prudent investment approach. Likewise, investors are keen to purchase real estate in Hong Kong, but many feel it’s becoming hard to get decent deals while prices stay high in the current low yield environment, leading to a greater interest for outbound investment opportunities.

Hightlights

Local tensions are the most important factor affecting the Hong Kong investment market in 2020. Transactions for commercial assets above HKD 100 million fell by 69% from Q2 2019 to Q3 2019. The decline could be attributed to the widely weakened sentiment since local tensions began to escalate in June.

Appetite for local and outbound investment remains positive. Despite the turbulence and uncertainties in the local market, Hong Kong based investors’ appetites for both local and outbound investment markets continue to grow.

Value-add becomes top investment strategy for Hong Kong based investors. 'Value-add' is the most popular investment strategy, this reflects investors’ intention to look for properties with higher returns.

Office remains the preferred asset type, while developments and land attracts more attention amid market downturn. In the next 12 months, 55% of our Investor Survey 2019 respondent’s intent to focus on ‘en-bloc office’ properties – usually regarded as safer asset investments because of their stable income stream and high-liquidity nature.

The Greater Bay Area – Shenzhen stays the most popular GBA mainland city for Hong Kong investors.​ Labelled as a ‘model city’ by the Central government – with outstanding competitiveness and high-quality growth, we are not surprised to see more investment interest go to Shenzhen.

Investors’ view on 2020 global property market outlook.​ 89% of Hong Kong-based investors have outbound investment intentions, results show London to be the most attractive destination for outbound investment.

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Research & Forecast Report

Annual

Hong Kong Investor Survey Report 2019

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