Cushman & Wakefield: It is expected that Chinese-funded enterprises will continue to increase their investment in core assets in Hong Kong this year, driven primarily by the establishment of headquarters and operational upgrades

Cushman & Wakefield stated that, based on multiple commercial property transaction cases in 2025, Chinese buyers are leading the bulk transaction market in Hong Kong, with buyers from the Greater China region (excluding Hong Kong) involved in amounts as high as HKD 17.3 billion, accounting for 43% of the overall market transaction amount, which is a new high since the pandemic in proportional terms.

Most Chinese enterprises use assets for establishing headquarters or operational purposes. As the first stop for mainland Chinese companies "going overseas," Hong Kong has advantages such as free flow of capital, common law system, mature financial services system, and a bilingual environment in Chinese and English, maintaining its position as a transit hub for Chinese enterprises "going overseas." In addition, policy benefits including the "Memorandum of Cooperation on Promoting Cross-Border Data Flow in the Guangdong-Hong Kong-Macao Greater Bay Area," talent introduction programs, and tax incentives provide enterprises with a more predictable development environment. In an environment of declining capital costs, capable Chinese enterprises tend to acquire quality assets to lock in long-term operational costs and stabilize cash flow, while also valuing future strategic layouts in Hong Kong as a two-way springboard connecting the mainland and international markets.

Looking ahead to 2026, as enterprises' demand for real estate allocation rebounds, it is expected that Chinese enterprises will continue to increase their investment in core assets in Hong Kong, driven mainly by "headquarters establishment" and "operational upgrades." Hong Kong, as the first stop for mainland capital "going out," and its role as a gateway for international capital entering the mainland, is clearly defined in its dual role, making it an indispensable asset allocation and business hub for mainland enterprises with a long-term vision.

As Chinese enterprises expand overseas and offshore businesses, more and more companies are choosing Hong Kong as their overseas headquarters or regional operational hub, driving the demand for self-use office buildings to continue rising. This move helps enterprises lock in operational costs while leveraging Hong Kong's advantages in professional services, tax systems, and geographical location to enhance global resource integration and decision-making efficiency. At the same time, the demand for data infrastructure supporting headquarters operations is gradually emerging. Especially against the backdrop of increasing demand for cloud computing, AI applications, and cross-border data processing, some Chinese and overseas investors have begun to pay attention to Hong Kong's potential in developing data centers.

Additionally, as the tourism market gradually recovers, especially with the rebound in regional tourism and short-distance business demand, the market demand for mid-range reception hotels is rising, while supply is relatively short, leading some investors to refocus on tourism hotel assets