Asia-Pacific Research Trip

Professor Siqi Zheng recently completed a research visit to Hong Kong and the Asia-Pacific region, meeting with scholars, practitioners, and policymakers to advance collaborative research on urban sustainability and real estate innovation.

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I just had an incredible week of gatherings and meetings in Hong Kong and Shenzhen — visiting leading developers, financial institutions, and universities, and coming away with a much richer sense of where this market stands today. I had the privilege of meeting with friends at China Resources Land, Henderson Land Development Company Limited, Sun Hung Kai Properties Limited, Ares Management (private credit) and sovereign-linked investors on the capital side; and colleagues at The University of Hong Kong, The Chinese University of Hong Kong's real estate programs on the academic side. Grateful for every conversation as well as the delicious meals!

Here are my takeaways:

Hong Kong real estate: cautiously optimistic. The industry had seen significant layoffs in the past few years, particularly among mid-career professionals, many of whom are pivoting toward tech. After a difficult few years, prices have started to move up over the past few months. At the same time, new money is entering - particularly recently due to the Iran War, some capital is moving from the Gulf Corridor to HK. The market is not fully recovered, but sentiment has shifted — people are genuinely more hopeful.

Shenzhen: energetic and resilient, with pockets of stress. The city feels alive — tech is booming, people are upbeat, and for well-located residential and large corporate users, the market holds up well. That said, the office market is under real pressure. Oversupply is severe: large companies built their own headquarters but only occupy a fraction, leaving vast amounts of space unleased. The mid-sized tenant base has thinned considerably.

Luxury residential still commands extraordinary premiums in HK and Shenzhen - for the right product. My site visit to an ultra-luxury waterfront development on the former Kai Tak runway was a reminder that quality and location win. Units priced at HK$50,000+ per sq. ft. — and still commanding a 30% premium over neighboring comparable projects.

Data centers are quietly moving. US chip restrictions are incentivizing investment flows toward Southeast Asia, where Nvidia hardware remains accessible. Hong Kong and Shenzhen continue to be two of the world's most dynamic urban laboratories. Always learning.

-Professor Siqi Zheng