Real estate deal flow in Singapore held steady while Hong Kong’s decline persisted, according to MSCI data, closing the gap between the two Asian hubs.
Year-to-date, Hong Kong and Singapore registered 107 and 96 entity-level property transactions, respectively, according to data from MSCI Real Assets. The transactions include deals of at least $10 million involving offices, residences and hotels.
While Singapore held steady, Hong Kong’s decline persisted with total deals at 62 percent lower compared to 2021. The latter city has been under pressure in recent years due to a myriad of headwinds including Covid-related restrictions, China’s economic woes and geopolitical tensions.
«In 2023, we are beginning to see a lot more Hong Kong assets traded at losses relative to what they were acquired for,» said MSCI head of Asia real assets research Benjamin Chow. «By contrast, the vast majority of Singaporean assets traded continue to feature strong capital growth relative to their acquisition prices.»
