Mainland Giants Circle as Hong Kong’s Commercial Icons Hit the Market

A seismic shift could be underway in Hong Kong’s commercial property market, as a trio of landmark assets hits the block — with eyes firmly fixed on mainland China’s state-backed investors.

After years of plunging values and waning demand, the city is banking on a mainland lifeline to stabilise its commercial real estate sector. Prices have slumped more than 30% since 2021, prompting the government to halt land sales and shifting attention to private transactions to restore confidence.

Leading the charge is a portfolio of eight retail sites owned by McDonald’s, scattered across some of Hong Kong’s highest-footfall districts including Tsim Sha Tsui, Mong Kok and Causeway Bay. Valued at HK$1.2 billion (AUD $226 million), the sites are expected to attract strong interest from Citic — the Chinese state-owned conglomerate that operates McDonald’s franchises across Hong Kong.

The burger giant, one of the world’s biggest commercial landlords, is offloading assets in what many view as a litmus test for Beijing’s investment appetite.

But it’s not just fries and foot traffic drawing attention.

Property heavyweight Lai Sun Development is reportedly considering the sale of its 50% stake in the CCB Tower in Central — a prized office asset jointly owned with China Construction Bank.

The bank, which occupies the other half, has not indicated any intention to consolidate ownership, raising speculation about new players stepping in.

Meanwhile, a mega-deal looms on the western edge of the city. The under-construction HK$20 billion airport mega-mall, led by New World Development and adjacent to the Hong Kong–Zhuhai–Macau Bridge, could reshape the retail landscape entirely.

Originally bid on by mainland SOEs in 2018, the project remains a strategic chess piece in China’s Greater Bay Area vision — and now, potentially, a trophy for Beijing-backed capital.

With deep pockets and high-level backing, mainland entities like Citic and other central SOEs are poised to set the tone for Hong Kong’s commercial market in the second half of 2025. But it won’t come easy.

Analysts expect any potential buyers to drive a hard bargain. Despite softer fundamentals — subdued growth, rising vacancies and muted retail activity — Hong Kong property still commands some of the highest prices globally.

For mainland investors, the opportunity lies not just in acquisition, but in rewriting the pricing playbook for an embattled market.

The outcome of these deals could mark a turning point: either a stabilising inflection led by fresh capital, or confirmation that Hong Kong’s commercial sector still has further to fall.

In a city long defined by its property fortunes, all eyes are now on Beijing’s next move.