Will Hong Kong see fewer creditor-led commercial property sales as assets stabilise?

City’s office and retail property segments have been mired in a multi-year slump that has triggered loan defaults Financial distress in Hong Kong’s commercial property market has moderated but not been completely eliminated, analysts say, with highly leveraged asset owners still expected to find refinancing their loans a challenge. The city’s office and retail property segments have been mired in a multi-year slump, with new supply outstripping demand in recent years as consumption slowed and interest rates surged, triggering loan defaults. “We do not expect defaults will increase noticeably from this time point, with transaction activity remaining relatively resilient, and much of the valuation correction has already been reflected in pricing,” said Thomas Chak, head of capital markets and investment services at Colliers Hong Kong.

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