Hong Kong ranks 8th amongst favoured cities for cross-border investment

Around 75% of investors have retained appetite towards real estate.

Hong Kong clinched eighth spot in this year’s top ten preferred cities for cross-border investment, according to CBRE’s latest Asia Pacific Investor Intentions Survey.

“Liquidity remains highly stable in Hong Kong’s banking system, with no noticeable change over the past 9 months. Investors’ confidence [in] Hong Kong, therefore, remains solid,” said Reeves Yan, executive director for capital markets at CBRE Hong Kong.

In addition, around 75% of commercial real estate investors across Asia Pacific remain interested in maintaining investment activity in 2020, according to CBRE. This is regardless of disruptions to travel, supply chains and business activities due to the COVID-19 pandemic.

The stable income stream and higher yield spread offered by commercial real estate relative to other asset classes have become the key propellants behind real estate investments. The continued lowering of interest rates in economies across the region will also support asset pricing, yielding compression in core markets when economies stabilise.

Office and industrial properties remain the more sought-after asset classes in Hong Kong given the solid demand and stable income stream in the long run. Select neighborhood retail malls with value-add potential will also be on investors’ radars.

Meanwhile, Beijing eclipsed Shanghai as the most preferred investment destination in Mainland China, supported by healthy demand and supply fundamentals.

CBRE expects the long-term outlook to brighten with recovery in Asia Pacific outpacing other economies. Sustainability will also continue to pervade investors’ decision making in the long term as effects from COVID-19 subside.
 

Photo courtesy of Pexels.com