Fears of HK commercial property bubble
Yields on office and retail space are already at record lows and rents among the highest in the world, and investors are increasingly turning their attention to smaller office spaces and even car parking spots, prices for which have more than doubled in some districts, according to analysts.
Hong Kong is not alone, with commercial and industrial property prices in Singapore also having hit highs.
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"The government is trying to do something about residential property price inflation, but it is very difficult against the backdrop of the money that is coming into Hong Kong," said Cusson Leung, analyst at Credit Suisse. "We believe most of the investment demand will shift from the residential market to the commercial property market."