China Real Estate: The number of commercial property transactions in Hong Kong in the first two months of the year was 723, an increase of 11.4% year-on-year.

Yang Mingyi, Senior Co-Director of Research Department at Midland Realty, pointed out that a total of 723 commercial properties (including first-hand and second-hand, excluding internal transfer transactions of five billion Hong Kong dollars or more) were registered in the first two months of 2026 in Hong Kong, with a total value of 62.43 billion Hong Kong dollars. This represents an increase of 11.4% in the number of transactions compared to 649 transactions and 113.80 billion Hong Kong dollars in the same period of 2025, respectively. With the rebound of the Hong Kong stock market, the interest rates have peaked and are now falling, leading to increased market confidence and continued improvement in the commercial property market. However, there is a lack of transactions exceeding five billion Hong Kong dollars, resulting in a significant decrease in the registered amount. Among the three types of properties, office buildings saw the largest increase in transactions, with 161 transactions recorded in the first two months, an increase of 28.8% from the same period last year. Shop transactions increased by 21% (190 transactions), and industrial transactions increased by 1.4% (372 transactions). It is estimated that the overall commercial property transactions for the whole year will increase by about 10% to nearly 5,000 transactions, with all three types of properties seeing an increase in transactions, with office buildings showing the strongest momentum. The highest transaction amount in the first two months was the sale of a group of shops in LIPPO Centre in Admiralty for 299.8 million Hong Kong dollars from the original owner, the Yonglun Group, to the owner of FANCL, Chen Zhiming. Looking back at 2025, a total of 4,466 commercial properties (including first-hand and second-hand transactions, internal transfers) were registered, with a total value of 656.35 billion Hong Kong dollars, representing a 30.4% increase in the number of transactions compared to 3,425 transactions and 575.30 billion Hong Kong dollars in 2024. If transactions with internal transfers of five billion Hong Kong dollars or more are excluded, 4,461 transactions worth 615.33 billion Hong Kong dollars were recorded in 2025, representing increases of 30.4% and 23.7% compared to 2024. The property market has rebounded, and with the prices of commercial properties falling significantly from their peak, attracting both homeowners and investors to enter the market, overall transactions have stopped declining after three consecutive years and have started to rise. In terms of office buildings (including hotels), excluding internal transfers, a total of 1,071 transactions were recorded in 2025, with a total value of 283.04 billion Hong Kong dollars, representing a sharp increase of 65.0% and 82.6% from 649 transactions and 154.99 billion Hong Kong dollars in 2024. The number of office building transactions has increased sharply due to a significant contraction in trades in 2024, and some commercial buildings have adjusted their prices to attract buyers, resulting in a significant rebound in 2025. There were 13 registered cases of transactions worth five billion Hong Kong dollars or more throughout the year, with 9 cases involving office buildings (69%), including 5 cases with transactions exceeding 10 billion Hong Kong dollars, which directly pushed up the total transaction amount. The highest transaction amount was in May when the Hong Kong Stock Exchange purchased a 9-storey commercial building in Central Exchange Square for 5.65 billion Hong Kong dollars. The second-highest was in December when a 4-storey office building in New Town Plaza in Kowloon Tong was sold for 1.96 billion Hong Kong dollars to the Asia-Trust of Singapore's Temasek Holdings, and the new buyer is the City University of Hong Kong. For industrial properties, excluding internal transfers, a total of 2,280 transactions were recorded in 2025, with a total value of 165.06 billion Hong Kong dollars, representing an increase of 25.6% and 4.9% from 1,816 transactions and 157.29 billion Hong Kong dollars in 2024. The highest transaction throughout the year was in November, when Taikoo Holdings sold the Taikoo Paint Factory at 4-6 Tsing Tim Street in Tsing Yi for 663 million Hong Kong dollars, with the new buyer being the North American fund Arbor Asset Management Company and Hong Kong Jianhua Group. In terms of shop properties, excluding internal transfers, a total of 1,110 transactions were recorded in 2025, with a total value of 167.24 billion Hong Kong dollars, representing an increase of 16.2% and a decrease of 9.6% from 955 transactions and 185.07 billion Hong Kong dollars in 2024. The significant decrease in amount is due to the high base set by the 40.2 billion Hong Kong dollar transaction of DPARK Shopping Mall and Car Park in Yue Man Square in the previous year. The highest transaction throughout the year was in January when the City University of Hong Kong purchased the podium of The Edge (Jida) Centre in Tsim Sha Tsui East for 880 million Hong Kong dollars.