Hong Kong regains spot in 2022’s top 10 most attractive cities for cross-border property investment

Hong Kong dropped out from the list in 2021.

CBRE’s latest Asia Pacific Investor Intentions Survey reveals that Hong Kong is the sixth most preferred destination for cross-border real estate investment across Asia Pacific. In 2021, Hong Kong was not on the top 10, whilst in 2020, the city ranked eighth.  

The survey, which covers all property types, found that a majority of investors (60%) intend to make more acquisitions this year than in 2021, with Tokyo, Shanghai and Singapore being the top targets in the region. Appetite for acquisitions is also strongest among Singaporean, Korean, Japanese and Australian investors.

Reeves Yan, Executive Director, Head of Capital Markets, CBRE Hong Kong: “Hong Kong’s steady economic recovery, improved leasing momentum, slower rental decline and high liquidity on the back of low financing costs helped commercial property investment volume rise by 51% to HK$79.5 billion in 2021 and surpass the pre-pandemic full-year total in 2019. The volume rose y-o-y in 2021 for the first time since 2017. Should the recent resurgence in local COVID-19 cases be contained within the first quarter of the year, demand for retail and hotel properties will strengthen in anticipation of the resumption of inbound tourism. Stable leasing demand, shrinking stock and low vacancy will ensure industrial remain the preferred asset class for institutional investors.”

Strong demand from institutional investors and keen competition for industrial properties underpinned Hong Kong’s investment market in 2021. Property funds and REITs spent a combined HK$21 billion on commercial property in Hong Kong over the year, the highest annual total since 2018.