Singapore-based investors unseated mainland Chinese buyers as the largest non-local group purchasing Hong Kong commercial properties in the second quarter.
According to Colliers, non-local and mainland Chinese investment in Hong Kong commercial properties totaled HK$5.46 billion in the April to June period. Singapore-based buyers contributed HK$3.37 billion, or 62 per cent of that amount.
Mainland investors put in HK$1.23 billion during the same quarter. In the preceding quarter, mainland Chinese investors led with HK$4.73 billion out of a HK$6.03 billion total, while Singapore investors were absent from the market.
Thomas Chak, head of capital markets and investment services at Colliers, said Singaporean investors are drawn to Hong Kong because pricing has become significantly more attractive after several years of correction. Many see this as an opportunity to acquire quality assets at a discount while positioning for a longer-term market recovery.
Chak added that demand from Singapore is likely to remain steady in the coming months, given that office asset prices have declined by as much as 50 per cent.