The U.S.-China trade conflict and local social unrest continued to dampen real estate investment activity in Q3 2019. Investment turnover fell by 44% q-o-q to HK$12.4 billion, the lowest quarterly total recorded since Q2 2016.
Chinese buyers did not complete any acquisitions, marking the first time they have been absent from the market since Q4 2009. Domestic investors accounted for the bulk of purchasing activity.
Industrial property investment was relatively resilient but less than ten deals were completed, the lowest number since Q2 2016. However, transaction volume totalled HK$4.3 billion, an improvement of 14% q-o-q over the previous quarter.
Demand for and capital values of industrial premises will remain relatively resilient backed by positive carry and the reintroduction of the industrial building revitalisation scheme.