Large distressed Hong Kong realty deals set to rise as more sellers accept losses By Reuters

Distressed Investment Properties in Hong Kong:

• Higher interest rates and vacancies lead to increased sales of distressed investment properties in Hong Kong.
• Lenders and landlords accepting steeper losses drive up the number of these deals.
• Half of the investment properties transacted in Q2 were foreclosure sales or sold at a loss.
• Colliers expects more distressed deals and discounted stocks in the market, putting pressure on prices.
• CBRE anticipates office prices to ease by 5-10% for 2024.

Chinese State-Owned Financial Institutions and Distressed Properties:

• Chinese state-owned financial institutions are hesitant to sell distressed properties in the current market.
• They prefer to hold off on sales until the real estate market recovers.
• Example: China Evergrande Group's headquarters in Hong Kong faces valuation challenges for sale.