In October, commercial and industrial properties in Hong Kong recorded 351 transactions, marking a 24.2% month-on-month decline and setting a new low for the past year, according to preliminary figures from the Land Registry. Despite the drop in volume, the recorded value of these transactions surged 35.0% to HK$6.469 billion, the highest since April this year. The industrial sector, as noted by Ricky Wong, a director of LHW Commercial, saw a 24.2% month-on-month decline in transactions to 185, while Jiagem Group's sale of two data centres in Fong Lee for HK$2.445 billion reignited the market, boosting industrial property values by over 2.29 times to HK$3.606 billion, a record high for 42 months. This downturn in commercial property markets continued, with Wong also reporting a 21.1% month-on-month decline to just 86 transactions for office properties, the lowest since July this year. The associated value decreased 24.2% to HK$1.839 billion. For shops and commercial properties, David Cheng, a senior business director of LHW Commercial, mentioned that only 80 transactions were recorded in October, a 27.3% decline and setting a new one-year low, with the total value also dropping 19.4% to HK$1.024 billion, indicating a prolonged downturn in the overall shop market.
A notable movement in the industrial sector came from Jiagem Group, which sold two data centres at Anju Street 3 and anunitong Street 8 in Fong Lee to an Amazon subsidiary for HK$2.445 billion, achieving a 2.29-fold increase in monthly values and setting a new record for 42 months. This transaction, despite the overall decline in commercial property transactions, highlighted the resilience of some sectors of the market. The persistence of lower transaction volumes suggests ongoing challenges in the commercial and industrial property segments.