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Two thirds of Grade-A offices sole in Hong Kong over past 6 months snapped adult by mainland buyers

Two third of Grade-A bureau properties sole in Hong Kong over a past 6 months were snapped adult by mainland firms, according to new investigate expelled on Thursday.

International skill consultant Knight Frank pronounced mainland companies paid a sum of US$2.9 billion for Grade-A offices from Jan to June, representing 64 per cent of a sum bureau sales exchange value in a city.

To put that expansion in context, over a past decade mainland firms have acquired around US$6.4 billion value of bureau properties in Hong Kong. .

The skill consultants now envision a shopping debauch by mainland firms will accelerate in perspective of a closer formation between Hong Kong and China, expectations of serve renminbi debasement opposite a US dollar, and a broadening of cross-border investment channels.

“Hong Kong is increasingly being used as a initial stop for Chinese outbound collateral and a springboard to universe markets,” pronounced Thomas Lam, Knight Frank’s conduct of gratefulness and consultancy.

“This will be extended by factors such as a doing of a Shenzhen-Hong Kong Stock Connect, a investiture of Asia Infrastructure Investment Bank, and a Belt and Road Initiative.”

Two Grade-A bureau buildings in Wan Chai were sole in a initial half – China Evergrande Group bought MassMutual Tower for HK$12.5 billion and China Everbright bought Dah Sing Finance Centre for HK$10 billion.

HK$58 billion and rising: mainland buyers dash out on resources and land in Hong Kong as yuan devaluation fears linger

Lam pronounced mainland companies, generally financial firms, have spin a vital direct motorist for

prime offices in Hong Kong’s Central Business District.

In a leasing market, around half of new lettings in Central were to mainland tenants, and they have spin a categorical contributors to mountainous rents, according to Knight Frank.

Hong Kong recently ranked tip in a consult of 31 cities around a world, with primary bureau space leasing for an normal of US$278.5 per block feet per annum, according to Knight Frank figures.

Marcos Chan, conduct of research, Hong Kong, Southern China Taiwan for CBRE Asia Pacific, pronounced many mainland-backed financial companies such as banks and word firms are looking for opportunities to buy domicile buildings in Hong Kong.

“They are peaceful to compensate a premium, and we will not be astounded if we see some-more record-breaking deals.

“In a foreseeable future, mainland enterprises will continue to be a widespread buyers,” pronounced Chan.

Mainland firms are also sloping to be a intensity customer of The Center during 99 Queen’s Road in Central, a core item owned by Li Ka-shing’s Cheung Kong Property (Holdings) with an seeking cost of HK$35 billion.

“Given a problem mainland corporates have faced in appropriation prize buildings in Central in a past, their courtesy is approaching to spin to a Murray Road Carpark supervision site that is approaching to be done accessible in a entrance 6 months.

The clever seductiveness from mainland corporates is approaching to see a site sole for a record price,” pronounced Denis Ma, conduct of research, Hong Kong during Jones Lang LaSalle.

The carpark site is a initial grade-A bureau site in Central to be offering for proposal in 20 years, with analysts awaiting a site to fetch HK$9 billion.