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Southeast Asian investors have taken the lead among non-local buyers of Hong Kong's commercial property market, with Singapore-based capital driving the trend, according to Savills. In the first half of the year, Hong Kong witnessed HK$30.36 billion (US$3.87 billion) in commercial property deals above HK$50 million, with Southeast Asian investors accounting for HK$3.37 billion, or more than 11 percent, of the total value.

This represents a significant rise compared to last year, when mainland investors led non-local buyers with HK$16.06 billion, or nearly 34 percent, of the total HK$47.32 billion. Southeast Asia now ranks third in non-local investment, behind mainland China and Hong Kong, with a share of 11 percent. Western investors have been notably absent this year.

The acquisition of The Center, a 152,000 square feet property purchased by DBS Bank for about HK$2.62 billion, and One Bedford Place, an office building bought by Wee Hur Holdings for HK$748.8 million, are examples of Southeast Asian firms' investments. Notable acquisitions include Jadebeach Villa, a luxury estate in Chung Hom Kok, Southern district, sold for nearly HK$1.17 billion to a Singapore-based group.

The Style Limited, whose directors are Singapore passport holders Luk Kwok Wing and Wee Teng Yuan, purchased the 30-unit enclave of The Style Limited. Centurion Holdings has also shown interest in the Yan Wo Building in North Point, potentially acquiring it for HK$364 million. Savills' senior associate director Nicholas To attributes the surge in Southeast Asian investment to several factors, including policy changes that have increased demand for commercial buildings faster than supply can meet it.

He predicts that Singapore-based investors will continue to buy Hong Kong assets despite a potential interest rate hike, particularly those focused on the living sector rather than core commercial properties.