Hong Kong’s property bears top 17 global markets in pessimism, spooked by higher rates, tepid growth and weak demand, CBRE survey shows

Name: SCMP
Telephone: +852-2680-8888

Net buying of Hong Kong-based professional property investors stayed at negative 11 per cent this year, after shrivelling to negative 13 per cent in 2023, CBRE says

The survey showed Hong Kong’s sentiments at the bottom of 17 markets, where net buying intention ranged from 7 per cent to 15 per cent

Reading Time:2 minutes

Why you can trust SCMP

Listings displayed at the office of the Hong Kong Property Services Agency on July 21, 2018. Photo: Bloomberg

Cheryl Arcibal

Published: 3:30pm, 16 Jan 2024Updated: 3:51pm, 16 Jan 2024

Hong Kong-based property bears topped the world in their pessimism, as a mix of high interest rates and a slumping economy with weak demand dampened any interest in buying assets, according to a study by the consulting firm CBRE.

The net buying intention of Hong Kong-based professional property investors remained at negative 11 per cent this year, after shrivelling to negative 13 per cent in 2023 from positive 9 per cent in 2022, CBRE said, based on a survey of 510 investors. The respondents comprised real estate funds, developers, property owners and operators, real estate investment trusts (Reits), insurers, private equity, high-net-worth individuals, family offices, pensions and other investors.

The survey, conducted in November and December, showed Hong Kong’s sentiment at the very bottom of 17 major real estate markets across the world, where net buying intention ranged from 7 per cent to 15 per cent, CBRE said.

South Korea, Japan and Singapore were the three most bullish markets in respective order, the consulting firm added. The overall intention to sell surged to 50 per cent, the highest since the survey began in 2014.

“Following significant capital value declines in their home market, Hong Kong investors exhibited the weakest buying intentions,” CBRE said. “Negative carry deepened and investment appetite shrank by half, hitting a 15-year low as financing costs reached a 22-year high.”

Property transactions in the city shrank to a 33-year low of 58,035 deals last year, while the value fell 13.8 per cent to HK$477.9 billion (US$61.1 billion), according to the Land Registry’s data.