In the Year of the Snake, Hong Kong’s property market could see unusual commercial transactions as traditional investors stay on the sidelines while educational and church organisations scoop up assets, according to analysts and deal-makers.
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Commercial property transactions in the city declined by more than 11 per cent to 3,461 in 2024 from 3,906 in 2023, according to data tracked by property agency Midland Realty.
The value of commercial deals fell by 46 per cent year on year to HK$20.1 billion (US$2.6 billion), according to Savills, which tallied non-residential transactions where the buyer acquired at least 30 per cent ownership of the asset.
Only “cash-rich buyers” were able to make deals happen last year, the property consultancy said.
Among commercial transactions of HK$50 million or more, the proportion attributed to non-profit organisations, including educational institutions and religious groups, rose markedly to 14.2 per cent in 2024 from 2.8 per cent in 2023, according to JLL.
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In notable deals last year, Christian church Island ECC paid HK$750 million for several floors of Kiu Fai Mansion in North Point, which houses the Sunbeam Theatre famous for its Cantonese opera performances. Hong Kong Metropolitan University paid HK$2.6 billion for the 15-storey One HarbourGate East Tower, a premium office building in Hung Hom seized by creditors from cash-strapped Chinese tycoon Chen Hongtian of Cheung Kei Group.