A trio of high-profile commercial properties in Hong Kong has been placed on the market, raising expectations that Chinese state-backed buyers could intervene to stem the city’s prolonged property downturn.
Real estate prices in Hong Kong have dropped more than 30% since peaking in 2021, with sluggish sales and rising vacancies prompting the local government to suspend the sale of commercial land, once a major source of public revenue.
The arrival of new buyers is now seen as critical to restoring confidence in the market.
Among the properties up for sale are eight retail premises owned by McDonald’s, collectively valued at approximately HK$1.2 billion (AUD $226 million).
Located in core shopping districts such as Tsim Sha Tsui, Causeway Bay, and Mong Kok, the sites are expected to attract interest from Citic, the Chinese state-owned conglomerate that operates McDonald’s franchises in Hong Kong.
Reuters reports the U.S. fast-food giant is one of the world’s largest commercial landlords, known for holding real estate and leasing it to franchisees.
Though relatively modest in value, the McDonald’s sale will be viewed as a bellwether for state-linked investment appetite.
Other significant listings signal deepening pressure on local developers to offload prized holdings amid weak market conditions.
According to Bloomberg, Lai Sun Development is considering the sale of its 50% stake in CCB Tower, a major office complex in Central Hong Kong.
The remaining half is owned by China Construction Bank, one of China’s largest financial institutions.
However, the bank has reportedly not expressed interest in acquiring full control of its local headquarters.
Also attracting attention is the HK$20 billion (US $2.6 billion / AUD $3.85 billion) airport mega-mall under development by New World Development, located adjacent to the Hong Kong–Zhuhai–Macau Bridge.
Originally tendered in 2018, the project remains a key strategic asset that could support Beijing’s push for deeper economic integration between Hong Kong and mainland cities in the Greater Bay Area.
State-owned enterprises that previously competed for the tender could re-emerge as potential investors.
Mainland money may set the market tone
With ample capital and political backing, mainland firms such as Citic and other central SOEs are well-positioned to pursue these transactions.
However, Hong Kong’s persistently high property values, among the most expensive globally, remain at odds with its faltering economic growth and soft retail performance.
If Chinese buyers do step in, they are expected to bargain aggressively, potentially setting a new benchmark for commercial property valuations in the city.
Their response to these offerings could help determine whether the market finds a floor or continues to slide deeper into correction.
