Key Takeaways
- • Hong Kong family offices and ultra-high-net-worth investors generated 16 per cent of commercial property transactions year-to-date, up from 9 per cent in 2025, according to Knight Frank.
- • Hotel deal volume reached HK$11.3 billion (US$1.4 billion) year-to-date, nearly double the HK$6.3 billion recorded across all of 2025.
- • Private capital accounts for 24 per cent of deals in hotels and student accommodation, as buyers target repriced hospitality sites and discounted prime offices.
- • Ken Peng of Raffles Family Office said an expected 0.25 percentage point Federal Reserve rate increase in December will do little to curb local or outbound acquisitions.
- • Japan is the primary overseas target for Hong Kong private capital, with Australia, New Zealand, Europe and the United States as secondary destinations.
Summary
Hong Kong family offices and ultra-high-net-worth investors accounted for 16 per cent of commercial property transactions so far this year, up sharply from 9 per cent in 2025, according to Knight Frank. The brokerage reported that hotel deal volume hit HK$11.3 billion (US$1.4 billion), nearly doubling the HK$6.3 billion recorded across all of 2025. Private capital makes up 24 per cent of deals in hotels and student accommodation, as buyers target repriced hospitality sites alongside deeply discounted prime offices.
Local buying has concentrated on discounted hospitality and office assets suited for conversion into long-term rentals or student housing. Rising university enrolments and a persistent shortage of purpose-built student beds allow operators to lock in rental cash flows nine to twelve months in advance, and repriced hospitality assets offer quicker turnaround than ground-up residential builds. Private equity groups and family syndicates are also acquiring deeply discounted prime offices, able to absorb vacancy without bank pressure. Colliers head of capital markets Thomas Chak noted that local dynasties often deploy funds through direct equity structures or high-dividend real estate investment trusts.
Beyond the domestic market, Hong Kong private capital has targeted Japan as its primary Asia-Pacific destination, concentrating on hotels and hospitality assets as well as core Tokyo office developments. Australia and New Zealand are secondary targets for regional diversification, while Western gateway cities in Europe and the United States absorb capital from families seeking portfolio dispersion. According to the report, most Hong Kong family offices hold minimal local real estate relative to their net worth.
According to Ken Peng, chief investment officer at Raffles Family Office, an expected 0.25 percentage point interest-rate increase by the US Federal Reserve in December will do little to curb outbound or local acquisitions. Analysts note that sustained elevated rates could pressure overleveraged, debt-financed owners facing refinancing gaps as lenders write down collateral valuations, creating acquisition pipelines for cash-rich family offices. Institutional funds with high borrowing costs may remain constrained until monetary policy reverses, which the article suggests could occur by 2027 if US growth moderates.
Local buying has concentrated on discounted hospitality and office assets suited for conversion into long-term rentals or student housing. Rising university enrolments and a persistent shortage of purpose-built student beds allow operators to lock in rental cash flows nine to twelve months in advance, and repriced hospitality assets offer quicker turnaround than ground-up residential builds. Private equity groups and family syndicates are also acquiring deeply discounted prime offices, able to absorb vacancy without bank pressure. Colliers head of capital markets Thomas Chak noted that local dynasties often deploy funds through direct equity structures or high-dividend real estate investment trusts.
Beyond the domestic market, Hong Kong private capital has targeted Japan as its primary Asia-Pacific destination, concentrating on hotels and hospitality assets as well as core Tokyo office developments. Australia and New Zealand are secondary targets for regional diversification, while Western gateway cities in Europe and the United States absorb capital from families seeking portfolio dispersion. According to the report, most Hong Kong family offices hold minimal local real estate relative to their net worth.
According to Ken Peng, chief investment officer at Raffles Family Office, an expected 0.25 percentage point interest-rate increase by the US Federal Reserve in December will do little to curb outbound or local acquisitions. Analysts note that sustained elevated rates could pressure overleveraged, debt-financed owners facing refinancing gaps as lenders write down collateral valuations, creating acquisition pipelines for cash-rich family offices. Institutional funds with high borrowing costs may remain constrained until monetary policy reverses, which the article suggests could occur by 2027 if US growth moderates.
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