JLL: In the first eight months of the year, the sale of retail properties valued at HKD 20 million or more in Hong Kong recorded approximately HKD 8 billion, showing a slight improvement in momentum.

Recently, the retail property market has shown signs of recovery. Deng Jieying, a senior director at Jones Lang LaSalle (JLL) Capital Markets, noted that with property prices having significantly adjusted downwards, interest from various sources, including local and overseas funds, has increased. Properties in core areas valued under HKD 100 million are particularly contested by multiple funds. According to statistics from Jones Lang LaSalle (JLL), transactions for retail properties priced at HKD 20 million or above amounted to about HKD 20 billion in 2022, but have generally declined in subsequent years, recording approximately HKD 11.2 billion last year. In the first eight months of this year, around HKD 8 billion has been recorded, indicating a slight improvement. Deng mentioned that the investment atmosphere has further improved in the past couple of months, with properties in areas like Tsim Sha Tsui and Central recording sales. Regarding the retail market, she believes the biggest difference from the office and residential markets is that nearly all retail buyers are investors, which is a strong indicator of future market trends. "Recently among buyers, there are small to medium-sized investors, new entrants, family funds seeking rental income, and even Southeast Asian consortiums looking for properties with stable returns." She cited an example of a retail property in Causeway Bay being sold for around HKD 50 million to 60 million, which has attracted numerous inquiries and competitive bids. "As long as it's in a core area and priced under HKD 100 million, the response has been very good." She analyzed that retail properties can attract attention from multiple funding sources primarily because prices have fallen by 70% from peak levels, while rents in core areas have begun to stabilize. Moreover, the return rates generally exceed 4%, meeting investor requirements.