Singapore narrows the gap with Hong Kong on property deals

Singapore is closing in on Hong Kong’s lead in real estate deals as the city-state benefits from its status as a wealth haven, while distressed property sales afflict the rival Asian financial hub.

Singapore is closing in on Hong Kong’s lead in real estate deals as the city-state benefits from its status as a wealth haven, while distressed property sales afflict the rival Asian financial hub.

So far in 2023, Hong Kong has seen 107 entity-level property transactions across sectors including office, residential and hotel sectors, and Singapore has had 96, according to data from MSCI Real Assets.

Deals in Hong Kong are 62 per cent lower than in 2021, while Singapore has largely managed to hold its ground despite high borrowing costs. Figures include deals of at least US$10 million (S$13.4 million).

This shift in transactions reflects the trend that has seen Singapore boosted by an influx of wealth and talent, resulting in strong demand for offices, climbing home prices and dramatic stories of surging rents.

In comparison, Hong Kong has been beset by a prolonged property downturn, especially in the office sector, due to years of pandemic curbs, China’s economic difficulties and increased geopolitical tensions.