Hong Kong property investment volume declines 5.5% in Q2
Strong non-local participation and interest in education and living assets may support second-half activity despite rate, wealth-effect and Chinese capital-flow headwinds.
Hong Kong investment property volume reached approximately HKD14 billion in Q2 2026, declining 5.5% from Q1, while inbound capital hit a three-year high.
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Investments totalled HKD14 billion during the quarter.
Hong Kong's investment property market remained resilient during the second quarter of 2026, with transaction volumes holding up despite economic and policy headwinds, according to Colliers.
The consultancy reported investment volume reached approximately HKD14 billion during the quarter, down 5.5% from Q1, as the market navigated potential interest rate increases, weaker wealth effects and the prospect of tighter controls on Chinese capital flows.
Colliers said office assets continued to account for the largest share of investment activity, while a major en-bloc residential transaction also boosted overall deal volume. Non-local investors remained active, with inbound capital reaching a three-year high, led by Singaporean investors who accounted for more than 60% of international capital inflows.
The consultancy identified education-related assets as an emerging investment theme, citing secure occupancy profiles and favourable long-term demand fundamentals.
Thomas Chak, Head of Capital Markets & Investment Services at Colliers Hong Kong, said opportunities in mortgagee sales, distressed assets and repriced properties continue to attract value-focused investors. Colliers expects education and living sector assets to drive investment activity during the second half of 2026 and has maintained its full-year investment transaction forecast of approximately HKD42 billion.