Interest Rates Are Expected to Peak in 2023 Further Border Reopening to Bring About Market Stability
HONG KONG SAR – Media OutReach – 15 December 2022 – Global real estate services firm Cushman & Wakefield announced the Hong Kong Property Market 2022 Review and 2023 Outlook today. The overall property market remained quiet in 2022 as investment and business sentiment stayed cautious, impacted by interest rate hikes and other factors such as global economic instability.
- Residential market transactions slowed noticeably in 2022; full-year transactions are now forecast to record a decade low, with a price decline further accelerating in Q4.
- The large-sized (non-residential, exceeding HK$100 million) real estate investment consideration in 2022 (as of 9 Dec) dropped by almost 45% y-o-y; industrial and development sites remained most attractive to investors.
- 2022 (as of mid-Nov) office net absorption returned to positive territory at 176,000 sq ft NFA, the first positive year since 2019, yet high availability has kept rents under pressure.
- High street retail rents have dropped, but inbound tourist numbers have gradually risen in the last few months, with some retailers strategizing ahead to prepare for further border reopening.
