Entering the fourth quarter, the commercial and industrial property market continues to adjust due to weak external economic conditions and a heavy wait-and-see sentiment. Overall sales volume reached the second lowest level this year according to Zhongyuan's (Commercial and Industrial Properties) latest data, recording only approximately 294 sales in October 2026, below the 300 barrier, marking the second lowest monthly level since this year. The total transaction value was about 5.309 billion HKD, with transaction volume and value decreasing substantially by 25.76% and 27.49% month-on-month; year-on-year, transaction volume slightly increased by 11.36%, while the transaction value fell sharply by 46.62%. The commercial and industrial properties market saw a 26% drop in October 2026, with Mong Kok's T.O.P being a crucial focus, experiencing over 60% losses. Zhongyuan's (Commercial and Industrial Properties) Director General Patrick Man pointed out that in October, the focus was on large-scale asset discounts, with Mong Kok's T.O.P being the most notable case. The property in question, formerly the Industrial and Commercial Services Department building, has a total floor area of around 28,428 square meters and was acquired by a Hong Kong National People's Congress representative, Chen Zhenbin, for approximately 2.3 billion HKD, resulting in a price per square meter of about 8,090 HKD. This transaction marked a 61% significant loss in book value, and if additional expenses such as stamp duty, management fees, and renovation costs are included, the total investment could be as high as 6.8 billion HKD, leading to a loss expansion of about 66.2%. The fourth quarter commercial and industrial property market showed a divisive trend. Office space sales and volumes slightly increased against the backdrop of the T.O.P full building deal, recording 54 transactions in October, a monthly and yearly increase of approximately 3.85%. The total transaction value was about 3.137 billion HKD, experiencing a 72.01% surge month-on-month, but still down nearly 60% compared to the same period last year. Retail space volumes and values were under pressure, with 61 sales recorded in October, down by 23.75% and 42.69% month-on-month; year-on-year, they increased by 38.64% and 36.66%. Industrial space transactions sharply decreased, with sales volume dropping to about 179 units, down 32.2% month-on-month, but up 6.55% year-on-year, and the value totaling 1.063 billion HKD, down 70.17% and 17.77% month-on-month and year-on-year, respectively.
Expected recovery in November transactions, Patrick Man noted that recent external political uncertainties have weakened, as political shadows fade with the U.S. midterm election settled and the White House facing congressional checks. Coupled with shifting Middle Eastern tensions influencing energy prices and inflation expectations, this has moderately intensified market watchfulness. However, with large asset purchases ongoing, transaction volume for commercial and industrial properties is expected to recover in November.