Hong Kong Real Estate Report

Published 16 October 2015

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Quarterly report providing expert analysis, independent forecasts and competitive intelligence on the real estate industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Real Estate Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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Hong Kong Real Estate Report
Product Price

BMI View: The office sector continues to offer the most promise regarding rentals, as Grade A establishments remain in high demand and lack of available space is pushing upward trend. Industrial real estate also represents a potential area for investment as the limited space, good demand and inauguration of national 'reindustrialisation' looks to offer opportunities in the mid-term. We opine that Retail will witness further contractions and advise vigilance when considering this market over the same period.

We have revised our economic forecast for growth in Hong Kong with real GDP to remain steady at 2.5% over 2016, no change from 2015, as the regional pressures, predominantly stemming from fiscal reforms and corrections in China, Hong Kong's largest trade partner, weigh-in on demand into the Asian Tiger economy. A main culprit that has subdued interest is the strong national currency. The HKD is tied to the US dollar, the recent rally in the greenback has seen Hong Kong exports become less competitive and the city viewed as a more expensive destination for travel and commerce. However, promising underlying macro-economic factors, such as rising private consumption, and the fact that foreign companies are interested in Hong Kong's semi-autonomous market due to its transparency and strong legal accountability, will keep demand particularly strong in areas such as tertiary services. We therefore opine real GDP to grow 1.1% to 3.6% by 2017. All three real estate sub-sectors that we cover are likely to benefit from the improving economic situation, and see activity rise across the medium term.

The office sector is benefitting from high demand for Grade A space from financial services, owing to the surging stock market in the first half of the year. This is expected to put upward pressure on rentals in popular investment locations, in particular the central business district (CBD) especially considering vacancies in the CBD sit at 1%. This should see rentals...

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BMI Industry View
Operational Risk
Industry Forecast
Table: Office Rental Rates
Table: Office Yields 2010-2019
Industry Forecast
Table: Retail Rental Rates 2010-2015
Table: Retail Yields 2010-2019
Industry Forecast
Table: Industrial Rental Rates 2010-2015
Table: Industrial Yields 2010-2019
Residential/Non-Residential Construction - Outlook And Overview
Table: Residential and Non-Residential Building Industry Data (Hong Kong 2013-2018)
Table: Residential and Non-Residential Building Industry Data (Hong Kong 2019-2024)
Residential Building
Non-Residential Building
Social Infrastructure
Table: Hong Kong Key Projects: Construction And Social Infrastructure
Macroeconomic Forecasts
Economic Analysis
Table: Economic Activity (Hong Kong 2010-2019)
Industry Risk Reward Index
Hong Kong Risk/Reward Index
Table: Asia Real Estate Risk Reward Index
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Table: Population Headline Indicators (Hong Kong 1990-2025)
Table: Key Population Ratios (Hong Kong 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Hong Kong 1990-2025)
Table: Population By Age Group (Hong Kong 1990-2025)
Table: Population By Age Group % (Hong Kong 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

The Hong Kong Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Hong Kong Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Hong Kong.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Hong Kong to test other views - a key input for successful budgeting and strategic business planning in the Hong Kong real estate market.
  • Target business opportunities and risks in Hong Kong through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.