Large distressed Hong Kong realty deals set to rise as more sellers accept losses

Higher-for-longer interest costs and ample retail and office vacancies have pushed the sales of distressed investment properties in Hong Kong higher in the second quarter, a trend realtors expect to continue in an already tepid real estate market.

An increasing acceptance among lenders and landlords to book steeper losses has driven up the number of these deals in a market forecast to remain lacklustre due to the higher interest rates and falling rental income, realtors said.