Hong Kong SAR - Mid-Year Market Outlook - Capital Market (Colliers) 14 July 2022
Despite the easing of Covid’s fifth wave in Hong Kong1, the US Fed increasing interest rates has hindered the investment market recovery and delayed investors’ decision-making in Q2. We expect sentiment will pick up in H2 2022 when investors gain more clarity on the rate hike, economic outlook and more relaxed social-distancing rules.
Supported by the strong demand and rental performance, industrial assets should remain the most preferred asset type, while co-living and residential developments are also attractive given solid housing demand. We expect to see funds and real estate firms, which accounted for 87% of the investment volume in Q2, to remain the key driver of the investment market for rest of 2022.
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