Stock Market rebound Has Revived Sentiment in the Commercial Real Estate Investment Market

• The recent stock market rebound has reversed investment market sentiment, with transaction volume increasing. In April, there were a total of 166 commercial transactions, up 43% quarter-on-quarter.
• The stock market rebound may lead to a short-term rebound in Grade-A office prices.
• Q1/2024 major commercial property transactions declined by 59% compared quarter-to-quarter, reaching HK$8.4 billion.
• Private investors and funds divest assets, leaving end users and State-Owned Enterprises (SOEs) as active buyers for en-bloc properties.
• Factors such as U.S. interest rate cuts, global stock markets, and China's policies are expected to influence the future investment market.
• Savills forecasts a 5% to 10% decrease in Grade A office prices and a 5% decrease in prime street shop prices in 2024.