The trading volume reached $4.9 billion (€4.23 billion), positioning the city as the second fastest-growing market in the Asia-Pacific region, only behind Malaysia.
The data service provider, which compiles deals valued at over $10 million, reports this is the highest quarterly amount since 2019, reflecting a steady recovery in the real estate sector of the financial enclave, which has been heavily impacted in recent years.
The report highlights that capital was concentrated in offices, data centers, retail spaces, hotels, and senior residences.
MSCI emphasized that major operations in Hong Kong covered both corporate and tech assets, driven by a gradual improvement in investment flows from mainland China.
This surge follows years of asset depreciation and financial constraints exacerbated by rising interest rates, which reached levels unseen since 2007.
However, the recent decision by the Hong Kong Monetary Authority to cut the benchmark interest rate by a quarter point to 4.25% has eased credit burdens and supported investment activity.
From January to September, real estate investment in the territory totaled $6.2 billion (€5.35 billion), marking a 39% year-on-year increase, as calculated by Morgan Stanley and published by the South China Morning Post.
Since the start of the monetary easing cycle in September last year, several major deals have been completed.
In July, Mike Cai Wensheng, co-founder of the Chinese app Meitu, a popular photo editing and retouching platform, acquired land for redevelopment in Causeway Bay for HK$750 million (€83.2 million), the company’s second purchase in three months.
Meanwhile, in October, Alibaba Group and its affiliate Ant Group spent HK$7.2 billion (€799.1 million) purchasing several floors of a project by Mandarin Oriental International at the former Excelsior Hotel site. This deal marked the largest real estate transaction in the city since 2021.
The office market remains active. This week, a unit on the 35th floor of the Bank of America Tower in Central district sold for HK$27.31 million (about €3 million), while the 52nd floor of The Center was transferred to Prosperous Global Investment for HK$565.29 million (€62.74 million).
“Global expectations are more optimistic than at the beginning of the year,” stated Benjamin Chow, head of private assets research for Asia at MSCI, as quoted by the Hong Kong daily.
“Returns are back to positive, and activity is recovering in most major markets. Everything indicates that 2025 will end on a favorable note,” he emphasized.
