In a striking turn of events, Hong Kong property investors are letting go of their assets at staggering losses, driven by an escalating trade war between the United States and China that has rattled an already beleaguered market.

On Tuesday, Bridgeway Prime Shop Fund Management sold a shop located at One Eighty in Shau Kei Wan for HK$20.1 million (approximately 87 million baht), resulting in a significant 20% loss for the fund. Founder Edwin Lee revealed that the fund had acquired the property for an average of HK$25 million just a few months ago in July 2023.

"This trade conflict will inevitably impact the capital market as investor confidence dwindles," Lee stated in a phone interview. "Just like property developers, we cannot afford to hold onto our assets while the market continues to decline."

As fears mount over future tariffs, U.S. President Donald Trump announced a 90-day freeze on increased tariffs for most trading partners, with the exception of mainland China and Hong Kong. Starting Thursday, the tariff on imports from China spiked to an eye-watering 125%.

In retaliation, Beijing has raised its own tariffs on U.S. imports to 84% and is expected to introduce stimulus measures to boost its struggling economy.

Just last month, Bridgeway sold another ground-level shop on Woosung Street in Kowloon for HK$18.7 million—reflecting a devastating 30% loss from the HK$27.5 million it had paid three years earlier. Lee commented on the market's grim state, indicating that while commercial properties face challenges, retail spaces may fare better than offices as consumer demand slowly rebounds.

In further evidence of market distress, Patrick Kwok Ho-Chuen, co-founder of QF Capital and heir to the famed SaSa International cosmetics chain, is actively selling a residential lot at 54 Chung Hom Kok Road for HK$250 million—about 24% below its original purchase price. This prime site holds great potential for developers, allowing for the construction of a three-storey detached house, according to Savills, its sole marketing agent.

Kwok had previously purchased the site in 2021, reportedly unifying the ownership for approximately HK$330 million. QF Capital’s portfolio also includes various industrial and commercial properties, reflecting a diversified investment strategy amid ongoing market uncertainty.

As the tariff war intensifies and economic challenges mount, a growing number of investors are scrambling to shed their properties. The outlook for Hong Kong's real estate market remains murky, raising questions about the future of both commercial and residential investments in the region.