Hong Kong Real Estate Report

Published 10 August 2015

  • 62 pages
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Hong Kong Real Estate Report

BMI View: Hong Kong, as a global financial hub and a gateway to mainland China, has one of the most dynamic commercial real estate markets in the world. Rental rates, particularly for retail, are among the highest in the world, and the market has traditionally been characterised by strong demand and, due to its small size, limited supply. With the market vulnerable to the impact of an economic slowdown in China, the medium-term outlook is one of stability in rental rates.

Hong Kong is a Special Administrative Region (SAR) of the People's Republic of China. It is governed under the principle of 'one country, two systems', which means that it retains many institutions, for example its common law legal system, that date back to its time as a British colony. All this gives a level of predictability to the business environment, although tensions with Beijing over the level of democracy allowed in Hong Kong do arise from time to time, as witnessed in the protests in the latter part of 2014.

Hong Kong's economy is closely linked to that of China, leaving the SAR particularly exposed to any potential slowdown in the mainland. The main risk to our outlook for the commercial real estate sector is thus a sharper-than-expected slowdown in China. However, other risks are the impact of rate rises in the US, any renewed crisis in the eurozone and, closer to home, any downturn in consumer confidence resulting from a fall in residential real estate prices.

The office market is currently characterised by moderate supply and demand. However, as a global financial hub, Hong Kong's office real estate market is highly developed, and we do expect demand to continue to meet the space available, with particular interest from international and mainland Chinese firms. Demand for premium space in the central business district will be the key driver of the office market, although we are also noting a trend of increasing development in more suburban areas.

Hong Kong's retail market is one...

BMI Industry View
Real Estate
Operational Risk
Industry Forecast
Office Industry Forecast
Table: Office Rental Rates
Table: Office Yields 2010-2019
Retail Industry Forecast
Table: Retail Rental Rates 2010-2015
Table: Retail Yields 2010-2019
Industrial 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: Major Projects - Residential/Non-Residential Construction And Social Infrastructure
Macroeconomic Forecasts
Economic Analysis
Industry Risk Reward Index
Industry Risk Reward Ratings
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 And 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.

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