In the first half of the year, Chinese-funded industrial and commercial shops fell more than 90%
Due to the strict control of capital outflows from the Mainland and the continued impact of the trade war on the market sentiment, investment in investment properties in the Mainland has shrunk significantly in recent months. According to the data of the Research Department of the Midland Industrial and Commercial Bureau, in the first half of this year, the large-scale transactions of industrial and commercial shops (values of 100 million yuan or more) involved only 3.63 billion yuan in transactions involving Chinese buyers, accounting for a large amount of business transactions. Only about 8.4%, the amount plunged 91% year-on-year.
In the first half of this year, a total of about 43.36 billion yuan (including corporate transfer transactions) were recorded in the industrial and commercial sector. The number of cases involving Chinese-funded consortiums was only 3.63 billion yuan, down 90% from 40.32 billion yuan in the first half of last year. In the second half of the year, 5.1 billion yuan also fell by about 29%.
The tiered office building has become a major target for Chinese-funded buyers. In the first half of this year, the relevant transactions involved a total of over $2.27 billion. The transactions were all Grade A commercial buildings on Hong Kong Island. The more notable cases included a Mainland developer to purchase the full-scale units of the Central Centre. The new industrial building was also sought after by the mainland funds. The new VIGNATURE of the Wong Chuk Hang Industrial Building also recorded cases of mainland buyers entering the market.
Mainland funds rebounded from the end of last year
Chen Haozhen, research director of the Midland Industrial and Commercial Bureau Information Research Department, said that although the market capitalization ratio and amount of the mainland funds decreased significantly in the first half of this year, if they were further subdivided in quarters, the proportion of Chinese-funded buyers has gradually recovered from the end of last year. He pointed out that the fourth quarter of last year was when the mainland funds were almost extinct in the industrial and commercial shops. The proportion was as low as 2.8%. In the first quarter of this year, the ratio has rebounded to 5.7%, and the second quarter has further climbed to 10.8%. Compared with 2017 and 2018, this is still a low level.