Investment Funds Get Active Again in Kowloon Commercial Market

28 February 2018

Paul Leung, Head of Kowloon Commercial Sales, Savills said, “We have noticed that recently, investment funds are eager to look for commercial properties in Kowloon, particularly Kowloon East. Most of them are foreign funds but old local family funds are also taking an interest. The latest transaction this month took place in Cheung Sha Wan, where PAG bought 50% of the shares of Peak Castle, amounting to HK$800 million. I believe more investment funds will start to target less core areas, such as Kowloon Bay and Kwun Tong.”

In the Kowloon commercial sales market, transactions volumes have been promising over the past year, particularly in Kwun Tong and Kowloon Bay (please refer to Slides 3 and 4 for the latest transactions). In particular, seven brand new Grade A office towers will be available in Kowloon East by 2019, while some of them are already in use. It is worth mentioning that among these seven new office buildings, the only one available for strata sale will be 38 Wai Yip Street (6313) developed by Billion Development, Sino Land and CSI Properties. This indicates a limited choice for investors who opt for strata-title commitment. Savills believes that over the coming year, office prices in Kowloon will increase by 5% to 8%.


Key Contacts

Paul Leung

Paul Leung

Deputy Senior Director
Kowloon Commercial Sales

Savills The Gateway

+852 2378 8652


May Yu

May Yu

PR Manager
Marketing & Communications

Savills Two Exchange Square

+852 2842 4409