Prominent real estate advisor Savills is pleased to announce that it has advised on a record HK$80 billion in real estate deals across all sectors in 2018 - including 14-30 King Wah Road (HK$9.95 billion), Octa Tower (HK$7.5 billion), 39 Shouson Hill Road (HK$5.9 billion) and Provident Arcade (HK$2 billion). Riding on the success, Savills will open a new Investment Private Office (“IPO”) headed by Jonathan Chau to capture new business opportunities.
Prominent real estate advisor Savills is pleased to announce that it has advised on a record HK$80 billion in real estate deals across all sectors in 2018 - including 14-30 King Wah Road (HK$9.95 billion), Octa Tower (HK$7.5 billion), 39 Shouson Hill Road (HK$5.9 billion) and Provident Arcade (HK$2 billion). Riding on the success, Savills will open a new Investment Private Office (“IPO”) headed by Jonathan Chau to capture new business opportunities.
Savills has identified some major new changes in the local real estate scene:
- Rise of the “next generation”
A subtle shift in investors from one generation to the next is changing the market. Traditionally, local high net worth individuals, family offices, real estate funds and a wide spectrum of mainland investors have been major players in Hong Kong’s real estate market. Today, those senior patriarchs, who were often self-schooled, learning by gut-instinct and hard-won experience who built and invested fortunes, are stepping back to make way for sons and daughters. The “next generation” is more likely to have attended an Ivy League university or an international business school and has adopted different ways of doing business.
- “Niche” real estate funds on the way
“Niche” real estate funds are multiplying as investors pool capital to access costly real estate markets both at home and abroad, often the US and Europe. Boutique developers are also becoming more common locally as availability of stabilized assets dwindles and investors turn to more opportunistic and value-added strategies.
Recognising that it must adapt to these new market conditions if it is to retain its number one position, Savills has opened a new Investment Private Office, HK/Asia (“IPO”) headed by Jonathan Chau to advise 2nd and 3rd generation high net worth individuals, institutional funds and boutique developers.
Johnathan Chau, Deputy Managing Director, Investment & Head, Investment Private Office, said: “As the first team in Hong Kong to cater to this niche target market, we collectively aim to give a more hands-on, bespoke service to a similar-aged and like-minded generation.”
Jonathan graduated from Simon Fraser University in Vancouver and joined Savills in 2006. Between 2016 and 2018 he has been responsible for a string of major investment deals totalling over HK$33 billion in value and won a loyal client following.
At the same time, Savills will not ignore its traditional clients many of whom are senior industrialists and high net worths from Hong Kong and the PRC. Existing investment teams will be strengthened under Peter Yuen, Managing Director & Head of Investment & Sales while Chief Executive Raymond Lee’s own investment department will see the addition of Godfrey Cheng, Senior Associate Director, Kowloon Commercial Sales.
Raymond Lee, CEO, Savills Greater China said: “We need to move with the times in Hong Kong’s ultra-competitive brokerage environment if we are to retain our top spot in the market. Conditions will be tough next year and we aim to be well positioned to meet the challenges ahead and give our clients the best possible advice.”