Low interest rates and risk aversion have drawn more investors to the property market despite the low yields it offers because rent rises are failing to match the demand-driven increase in capital values, agents say.

Hong Kong Lands Registry data show 13 deals of more than HK$100m were closed in the commercial property market in July, and total deal values reached HK$3.05bn for the month, an increase of 68.5% on the HK$1.81bn worth of transactions in June.

A total of 114 transactions of more than HK$100m were done so far this year, with transaction values reaching about HK$25.7bn - down 49% on deal values of HK$50.3bn for the same period last year, according to property consultancy DTZ.

South China Morning Post