American League: The number of business registrations in Hong Kong hit a 5-year high in the first 8 months, and the market is recovering

The Zhitong Finance App learned that according to data from the Comprehensive Land Registry of the United States Industrial and Commercial Information Research Department, the total number of commercial and commercial registration cases in Hong Kong was 3,494 in the first 8 months of 2026, up about 14.5% from the previous year, reaching a record high of about the same period in the past 5 years; however, the registration amount recorded about 36.2 billion yuan (HK$, same below), and still fell 3.5% from the previous year.

Ma Taiyang, CEO of Midland Group and Midland Stores, said that the overall trading volume of commercial stores rebounded year on year, reflecting that the market had broken away from its low position and that buyers were more able to afford commercial properties after price adjustments. However, registration amounts have not fully followed the recovery in turnover. It can be seen that prices are under pressure. The market is mainly driven by properties with reasonable prices, rental support, and long-term appreciation potential. It is expected that the number of monthly registrations in the commercial store market will remain at about 400 in the future, and rent pressure is expected to gradually ease and stabilize.

In August 2026 alone, the total number of commercial and commercial store registrations in Hong Kong was 410, down 16.2% from the previous month; the registration amount recorded about $4.57 billion, a decrease of 14.0% over the previous month, and the amount drop was slightly lower than the number of registrations. Ma Taiyang pointed out that the overall business registration volume and amount declined in August, mainly reflecting the normal consolidation of the market after the increase in large transactions in July. Although the number of large transactions during the period decreased compared to July, the market still recorded a number of representative transactions. A local family bought the entire Henry Group Center in Causeway Bay for $892 million and a shop and parking space property in a nearby commercial building; some buyers spent about $473 million on the entire Kowloon Funeral Home and the adjoining factory, reflecting the value of reconstruction, operation, or long-term asset allocation, which still attracted the attention of powerful buyers.

It is worth noting that although the number of commercial store registrations declined month-on-month in August, the Hong Kong commercial and commercial market has maintained a monthly transaction level of 400 or more for 6 consecutive months, the best performance since 2021. Looking back at 2021, the number of monthly registrations in the commercial and commercial store market was higher than 400. Among them, it recorded more than 500 transactions for 7 consecutive months.

Ma Taiyang believes that commercial and commercial turnover remains stable, and it can be seen that the market trading base is improving; with price adjustments, owners' willingness to increase bargaining space, and capital to find investment properties with attractive returns, the commercial store market is expected to gradually establish a more stable momentum for recovery. Currently, there is no clear sign that the market is weakening; it is just that the pace of transactions is slowing down.

Office buildings continue to be an important driving force for the industrial and commercial market. The total number of commercial building transactions registered in the first 8 months was 896, an increase of 20.9% over the previous year, the highest increase among the three major commercial and commercial sectors; the registration amount recorded about 18.01 billion yuan, an increase of 10.5% over the previous year. Commercial buildings also continued to be the only category in the three major sectors to record a sharp rise in value, reflecting the continued recovery in capital interest in office properties.

As for August, 142 commercial building sales registrations were recorded, down 6% from the previous month; the registration amount was about 2.45 billion yuan, down 7.8% from the previous month. Ma Taiyang said that commercial building turnover is still at a relatively active level, while the volume rose simultaneously in the first 8 months, reflecting the gradual recovery of the market's ability to bear commercial building assets. Funding is still concentrated on high-quality office buildings. High-rise units at Hong Hong Plaza in East Tsim Sha Tsui sold for about 166 million yuan, with a price of about 10,000 yuan. The transaction price hit a record high of this type of commercial property in the past two years; some units at the Admiralty Far East Financial Center also changed hands after holding the goods for about half a year, making a book profit of about 17.28 million yuan, an appreciation of nearly 20%. Ma Taiyang believes that individual commercial building transaction prices and resale cases have recorded ideal performance, reflecting that high-quality office buildings in the core area have begun to attract investors and users back into the market after the price correction.

In terms of leasing performance, the vacancy rate for grade A office buildings in August fell further to 8.6%, a new low after December 2020; among them, the vacancy rate in Jiaxia East fell significantly by 0.9 percentage points month-on-month to 16.3%, also hitting a new low after October 2022. On the other hand, rents for Grade A offices rose 0.9% month-on-month in August, and have increased cumulatively by about 2.5% since this year, reflecting the gradual bottoming of office rents.

Ma Taiyang pointed out that the continuing decline in the vacancy rate is an important positive sign for the commercial building market. In particular, areas with high supply and high vacancy pressure in East Kowloon in the past have also recorded significant improvements, reflecting the gradual recovery of corporate rental demand. As the financial market atmosphere is active, demand for enterprise expansion and relocation increases, and the supply of high-quality buildings in core commercial areas is gradually absorbed, the downward pressure on rents is expected to ease further, and the investment value of high-quality commercial buildings is expected to gradually emerge.

In terms of the store market, the number of transaction registrations recorded 98 in August, a slight decrease of 1% from the previous month, reflecting that store transactions remained generally stable; however, the registration amount was about 800 million yuan, down 36.3% from the previous month, mainly affected by the decline in large transactions. Cumulatively, in the first 8 months, the number of store trading registrations recorded 816, up 13.5% year on year; registration amount was about 8.38 billion yuan, down 22.5% year on year.

Ma Taiyang believes that the year-on-year increase in store turnover shows that the market is still interested in people's livelihood consumption areas, areas with mature transportation facilities, and street stores with a relatively stable leasing base. However, the year-on-year decline in transaction amounts shows that buyers are still mainly targeting properties with reasonable prices, attractive rental returns, and room for long-term reorganization. With the gradual stabilization of local retail and food consumption, combined with the effects of tourist consumption and peak holiday seasons, it is expected to support retail leasing in some core retail areas and residential areas.

In the industrial building market, the number of trade registrations recorded 170 in August, down 28.9% from the previous month, the biggest drop among the three major sectors; the registration amount recorded about 1.31 billion yuan, down only 5.8% from the previous month. The sharp decline in registration volume was mainly affected by the relatively active trading of industrial buildings in July and the high base formed by centralized registration of some transactions; however, August still recorded more than 400 million yuan in transactions for the entire Kowloon Funeral Home building and neighboring factories, which supported the overall registration amount.

Cumulatively, in the first 8 months, the number of industrial building trading registrations recorded 1,782, an increase of 11.9% over the previous year. It continues to be the most active trading category among the three major commercial and commercial sectors; the registration amount was about 9.81 billion yuan, down 5.8% from the previous year. Ma Taiyang said that the number of transactions in the industrial building market has remained steady, reflecting the continued demand for practical industrial and storage properties from private buyers, small and medium-sized enterprises and investors. As demand for industrial buildings gradually improves, and some landlords are willing to provide more attractive bargaining space, it is expected to help maintain active industrial building transactions.

Looking ahead to the future market, Ma Taiyang believes that the commercial and commercial store market is still in a recovery phase where volume comes first and prices are gradually bottoming out. First-hand projects such as iCity and No. 83 Yongkang Street still have some units to be digested in the market. If developers continue to sell with market-close pricing and flexible payment arrangements, it is expected that they will continue to attract users and investors to enter the market and support future business registrations. The recent recovery of the commercial and commercial store market has many foundations, including the steady stabilization of registration volume for many months, gradual improvement in vacancy rates in the first building and industrial buildings, a recovery in office rents, and an increase in the market's ability to bear high-quality assets in the core area. It is expected that the number of monthly registrations in the commercial store market will remain at about 400 in the future, and rent pressure is expected to gradually ease and stabilize. Among them, commercial buildings with core locations, high-quality management, convenient transportation, stable leasing infrastructure and attractive pricing are expected to continue to be the main target of large capital and long-term investors.